LONDON: Capital Limited (LSE: CAPD), a leading mining services provider, announced the signing of a major mining services contract with Reko Diq Mining Pakistan Limited, operated by Barrick. This agreement marks a significant milestone for the development of the Reko Diq copper-gold project, one of the world’s largest and most cost-effective operations.
The long-term contract, which extends through December 2028, is expected to generate over $60 million annually once fully operational. Additionally, the agreement includes a provision for a five-year extension after 2028.
Capital’s responsibilities under the contract include tasks ranging from early works civils, focusing on pre-production construction, to tailings storage facility mining services, which involves the construction and maintenance of the facility. Operations are set to begin in the fourth quarter of 2025, with full utilization of equipment projected for later phases. Mining equipment previously used at Belinga and Sukari will be deployed to streamline the processes, with workforce onboarding nearing completion.
Capital’s presence at Reko Diq has grown significantly, building on its record of providing drilling services since 2023 and a longer association with Pakistan dating back to 2008. In addition to the new services, Capital remains committed to delivering geotechnical drilling services as part of its comprehensive offerings.
Jamie Boyton, Executive Chair of Capital, said, “Reko Diq is set to be the next truly major copper operation in the world, and so it is exciting for us to be bringing our services to the site at the very beginning of its development, first through drilling and now adding mining services. Today highlights the strategy core to Capital of focusing on adding our services at long-term contracts at world-class assets. We are also thrilled to be able to redeploy the majority of our mining kit from our previous two mining contracts and continue to drive a return from this investment.”
The Reko Diq project is owned jointly by Barrick (50%), three federal state-owned enterprises (25%), and the Government of Balochistan (25%). It is projected to rank among the top 10 copper mines globally in terms of production and has an estimated mine life of 37 years, with exploration potential to extend operations further. Barrick’s feasibility study has identified a C1 cash cost of $0.53 per pound of copper, positioning the project as one of the lowest-cost operations in the world.
This transformative agreement underscores Capital’s commitment to the long-term success of the Reko Diq project, which aims to enhance Pakistan’s presence in global mining.