Terrorism in Pakistan Threatens Foreign Mine Development, Saudi Arabia Still Invests Billions

Terrorism against the miners is threatening key foreign investment in Pakistan. At least 20 miners were killed and seven others wounded in an attack on a coal mine in Duki district, in the southwestern province of Balochistan – a region housing Barrick Gold's (NYSE:GOLD) principal copper-gold project.

Per Al Jazeera's report, gunmen stormed the miners' quarters, fired rockets, and used grenades, damaging equipment before fleeing the scene. No group has yet claimed responsibility for the attack, but suspicion is likely to fall on Balochistan separatist groups that have long targeted workers from outside the region.

Balochistan, situated between Afghanistan and Iran, has a long history of tensions between local ethnic groups and the federal government. Pakistan's largest yet least populated provinces are rich in natural resources, including copper, gold, and oil.

However, it has been plagued by a low-level insurgency since 2004, with separatist groups accusing Islamabad of exploiting these resources without benefiting the local Baloch population.

The region's resource wealth is crucial to Pakistan's economic aspirations, and the region's mineral potential has attracted international investors.

Saudi Arabia signed a $2 billion investment deal across various sectors, including mining.

Additionally, Saudis invested $1 billion in Barrick Gold's Reko Diq copper-gold mine. Located in the Chagai district, Reko Diq is one of the largest undeveloped copper-gold deposits in the world.

Per the Middle East Monitor, Saudi-backed Manara Minerals Investment Company bought into a part of the Pakistani federal government, which held 25% of the project. Barrick continues to hold 50%, with the remaining 25% in the hands of the Balochistan provincial government.

Pakistan has four additional major mineral projects, including copper sites in the aforementioned Chagai, Waziristan district, and a copper smelter in Gwadar.

The city of Gwadar is critical to Pakistan's connectivity with global trade routes, especially as part of China's Belt and Road Initiative. Yet the lack of business activity and poor infrastructure have rendered these opportunities fruitless—despite its ability to host bigger ships than Karachi, the country's main seaport.

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