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U.S.-Pakistan Mining Deal Faces Taliban Threat Amid Escalating Attacks

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Baloch Liberation Army militants launched a deadly coordinated assault on Pakistan’s Balochistan Province on Jan. 31, 2026, killing 58 people and disrupting operations at Reko Diq, a $1.3 billion mining project central to U.S.-Pakistan economic ties. The attack targeted military, police, and civilian sites, including the road to Reko Diq — one of the world’s largest untapped copper and gold reserves. Pakistani officials confirmed the B.L.A. used U.S.-abandoned Afghan weapons, highlighting the group’s growing access to advanced arms.

The assault underscores risks to the Trump administration’s push for foreign investment in Pakistan’s mineral-rich regions. U.S. officials touted the deal as a counterterrorism and economic win, but security threats persist. Canadian firm Barrick Mining, which owns 50% of Reko Diq, suspended development until mid-2027, citing instability. Analysts warn the B.L.A.’s campaign — fueled by local grievances over resource allocation — could derail the partnership, already strained by regional tensions.

Geopolitical instability compounds the crisis. Pakistani leaders fear a U.S.-Israel war in Iran might create a power vacuum, enabling militants to exploit porous borders. Other groups, including the Pakistani Taliban and Islamic State affiliates, have also intensified activity in Balochistan. Despite claims of regaining control, Pakistani military operations have failed to quell civilian support for the B.L.A., which frames its violence as resistance to perceived exploitation.

The violence highlights a stark reality: lucrative mining deals in volatile regions require more than diplomatic gestures. With Reko Diq’s future uncertain and foreign companies retreating, Pakistan’s ambition to diversify its economy beyond Chinese dominance hangs in the balance.