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China-backed Saindak mine may shut over Balochistan insurgency

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The biggest Chinese-operated copper and gold mine in Pakistan warns that worsening insurgency in Balochistan may force suspension. The managing director of Saindak Metals Limited wrote to Pakistan’s energy ministry that law‑and‑order has severely affected transport of essential cargo. If the situation continues, operations may cease within a month due to lack of production materials.

The Saindak Copper-Gold Project, leased to the state‑owned Metallurgical Corporation of China since 2001 and extended in 2022, accounts for most of Pakistan’s roughly $750mn of copper exports, almost all shipped to China. China is Pakistan’s largest bilateral lender under the Belt and Road Initiative championed by Xi Jinping.

Recent attacks — including a bombing in Quetta killing over 20 and a coordinated assault in January — have made road travel “increasingly hazardous.” A source says security is especially bad near major projects like Saindak and the nearby Reko Diq mine. Pakistan’s military claims it killed over 100 militants since early July, but Chinese officials have warned that improved security is needed for further investment.