Pakistan's largest operating copper and gold mine, Saindak, has warned of a potential shutdown within a month due to worsening security in the Balochistan province. A letter to Pakistan's energy ministry, seen by the Financial Times, revealed that militant insurgency has severely affected the transportation of critical supplies to the mine, making ongoing operations unsustainable. This mine, jointly operated by China's state-owned Metallurgical Corporation of China (MCC) and Pakistan's state-owned Saindak Metals Limited (SML) since 2001, exports almost all its output to China and contributed substantially to Pakistan's $750 million in copper product exports last year.
The Pakistani federal government has pledged to increase security around the Saindak mine. State Minister for Interior Talal Chaudhry confirmed that authorities received the mine operator's security concerns in early July and have ordered agencies to boost deployment around installations, personnel, and cargo. The managing director of Saindak Metals Limited, Raziq Sanjrani, however, denied reports of an imminent shutdown, stating the mine has operated without interruption for 25 years and there is "no possibility of its shutdown," while acknowledging a request for help moving furnace oil due to transporters' reluctance to use certain routes.
The unrest in Balochistan, marked by increased attacks from groups like the Baloch Liberation Army (BLA) on military installations, police posts, and transport routes, specifically targets infrastructure linked to the China-Pakistan Economic Corridor (CPEC). These security concerns extend beyond Saindak, impacting other significant projects like Barrick Mining's proposed $9 billion Reko Diq gold and copper project, located about 50 kilometers away. China's foreign ministry stated they were unaware of the immediate situation but would work with Pakistan to protect Chinese interests, including citizens, projects, and institutions in the country.
