Saindak Copper-Gold Mine faces shutdown in a month over Balochistan security crisis
Synopsis
Key Takeaways
Pakistan's largest operating copper and gold mine, the Saindak Copper-Gold Mine in Balochistan, is facing a potential shutdown within one month as deteriorating security conditions disrupt the transport of critical supplies to the facility, according to an analysis by Mining.com. A formal letter sent to Pakistan's Ministry of Energy warned that militant insurgency in the province has severely affected mine operations, raising the prospect of a full production halt.
Security Breakdown on Supply Routes
Road transport — the mine's primary lifeline for supplies — has grown increasingly hazardous amid a surge in attacks by separatist militants targeting security forces, infrastructure, and foreign-linked projects across Balochistan. The mine's operators flagged that without an urgent improvement in ground conditions, sustaining operations would become untenable within weeks.
Pakistan's Minister of State for the Interior, Talal Chaudhry, responded by stating that provincial authorities and security agencies had been directed to strengthen protection for mining installations, personnel, logistics, and transportation corridors in the region.
China's Stake in Saindak
The Saindak mine has been operated by China's state-owned Metallurgical Corporation of China (MCC) since 2001 under a lease agreement running until 2037. The bulk of the mine's copper and gold output is exported to China. According to the report, copper exports from the facility generated approximately $750 million in revenue for Pakistan last year alone.
This comes amid broader concerns over the safety of Chinese nationals and assets across Balochistan, where Beijing has invested billions of dollars under the Belt and Road Initiative (BRI). Repeated attacks on Chinese personnel and infrastructure have prompted Beijing to press Islamabad to deliver stronger security guarantees for its projects.
Shadow Over Reko Diq Project
The security deterioration has also cast uncertainty over Barrick Mining's proposed $9 billion Reko Diq copper-gold project, located approximately 50 km from Saindak. The Canadian mining giant is reportedly reviewing regional security risks before committing to the next phase of development — a delay that could have significant consequences for Pakistan's mineral revenue ambitions.
Notably, Reko Diq is considered one of the world's largest undeveloped copper-gold deposits, and its stalling would represent a major setback for Islamabad's efforts to monetise Balochistan's vast mineral wealth.
What This Means for Pakistan's Mining Sector
Balochistan holds some of the world's largest known copper and gold reserves, and the province is central to Pakistan's strategy for economic recovery through mineral exports. The latest warning underscores the widening gap between the country's resource potential and its ability to attract and retain foreign investment in a volatile security environment.
If the Saindak mine does halt operations, it would mark one of the most significant disruptions to Pakistan's mining sector in recent years, with ripple effects on export revenue, Chinese investor confidence, and the broader BRI portfolio in the country. All eyes now turn to whether Islamabad can deliver on its security commitments before the one-month deadline expires.