Capital signs civil works, tailings contract with Reko Diq

UK-based mining services firm Capital Ltd. (LSE: CAPD) announced on Wednesday it has signed a contract with Reko Diq Mining Pakistan that would see the company expand its service offering at the world-class copper project operated by Barrick Gold (TSX: ABX).

The agreement involves two phases of work: 1) early civil works for the construction of Reko Diq prior to its first production; and 2) the construction and ongoing maintenance of the tailing storage facility.

During the first phase, Capital said it will leverage equipment previously used at the Belinga iron ore mine in Gabon (Fortescue) to hit a full run rate from the fourth quarter of 2025. The equipment is already on site, and commissioning is underway. Onboarding of the workforce is also almost complete, and operational training has commenced.

In the second phase, the company said it will use the majority of the fleet from the Sukari mine in Egypt (AngloGold). This work is expected to begin at the start of Q4 2025, reaching full utilization in the second half of 2026.

The contract, says Capital, represents a “transformative agreement” as it sets the stage for long-term success. It will run through December 2028 and is expected to generate over $60 million in annual revenue. The agreement also includes a provision for a five-year extension after 2028.

“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,” Jamie Boyton, executive chair of Capital, stated in a news release.

Reko Diq — owned 50% by Barrick, 25% by three federal state-owned enterprises and 25% by the government of Balochistan — is set to become one of the world’s largest copper-gold operations, with first production targeted for 2028.

According to a feasibility study by Barrick, the project will be in the top 10 copper mines globally by production while being amongst the lowest-cost operations in the world with a C1 cash cost of just $0.53/lb.

The long-term outlook of this operation is also compelling, with an estimated life of mine of 37 years and Barrick seeing exploration targets that could support a significant further extension to the mine life, Capital said.