Pakistan's Copper Reserves May Offer Bargaining Power In US Trade Talks

As Pakistan faces a 29% tariff on key exports to the United States, attention is turning to one of the country’s most valuable untapped assets: the Reko Diq copper and gold mine. With global demand for strategic metals surging, the mine’s operator, Barrick Gold, has suggested that the resource could serve as an important point of leverage in Islamabad’s trade negotiations with Washington.

This proposal places natural resources at the center of a broader geopolitical and economic debate—how countries can use critical minerals not just for development, but as tools in securing more favorable terms in international relations.

Reko Diq: A Resource of Strategic Scale

Located in the mineral-rich province of Balochistan, the Reko Diq mine is considered one of the largest undeveloped copper-gold deposits in the world. Once operational, the site is expected to produce around 200,000 tonnes of copper and 250,000 ounces of gold annually over several decades.

The project is jointly owned by Barrick Gold and the Government of Pakistan, with the province of Balochistan holding a minority stake. The long-term nature of the mine, coupled with its vast output potential, makes it a significant asset not only for domestic economic growth but also for strategic positioning in international markets.

Barrick CEO Mark Bristow has publicly stated that Pakistan's resource wealth, particularly copper, should be viewed as a geopolitical strength that could inform the country’s trade posture—particularly amid growing tensions with the US over tariffs and broader economic alignment.

Copper’s Rising Strategic Value

Copper has become one of the world’s most critical industrial materials. Its applications in renewable energy infrastructure, electric vehicles, defense systems, and telecommunications have led governments to increasingly label it as a strategic or critical mineral.

As countries compete to secure stable supplies of these essential resources, nations like Pakistan—with untapped reserves—gain new relevance. In a global context where resource security is becoming as important as military alliances, copper mines like Reko Diq are no longer simply economic ventures; they are tools of influence.

The US itself has flagged vulnerabilities in its critical minerals supply chains, with policy documents pointing to an overreliance on imports. As such, resource-rich states that can offer future supply lines may find themselves in a stronger bargaining position.

US-Pakistan Trade Disputes

The 29% tariff on select Pakistani exports, primarily textiles and industrial goods, stems from trade reclassifications and broader tensions in bilateral relations. The tariff, imposed under a Generalized System of Preferences (GSP) review, has already impacted Pakistan’s struggling industrial base and put pressure on its trade balance.

Pakistan has limited retaliatory tools, as its export base to the US is concentrated and largely reliant on preferential treatment. However, the existence of a major copper deposit—one in which US interests may eventually seek investment or access—offers a new potential bargaining chip.

Though Pakistan is still several years from fully developing and exporting copper from Reko Diq, the long-term strategic implications are significant. The country could use its future role in copper markets as a diplomatic lever, offering access or cooperation in return for trade concessions or regulatory easing.

Barrick Gold’s Role in Strategic Diplomacy

Barrick Gold, one of the world’s largest gold and copper producers, has taken an unusually forward position in aligning commercial development with geopolitical strategy. CEO Mark Bristow has stated that Reko Diq could serve as a “bridge” between Islamabad and Washington, offering both economic value and mutual strategic interest.

This type of corporate positioning is increasingly common as global companies operating in resource extraction are drawn into national and international policy discussions. Barrick’s suggestion reflects an emerging model where mining firms do not simply extract minerals—they also participate in shaping how those resources are used diplomatically.

Still, this approach is not without risks. Politicising mineral development can invite regulatory scrutiny, public backlash, or even geopolitical pushback from competing powers. For Pakistan, it will be important to maintain a careful balance between commercial partnerships and sovereign control over national assets.

The Wider Lesson: Resource Leverage in Trade

Pakistan’s case is illustrative of a broader dynamic in global trade. Developing countries with significant mineral resources are increasingly aware of the strategic value these assets represent. In a world reshaped by supply chain insecurity, decarbonisation, and economic realignment, copper, lithium, cobalt, and rare earth elements are becoming diplomatic currencies.

Reko Diq may not change the immediate reality of tariffs, but it represents an opportunity to reposition Pakistan in future economic negotiations. If managed effectively, it could allow Islamabad to speak not just as a trade recipient—but as a holder of critical resources the world needs.

Conclusion

The Reko Diq copper mine stands at the intersection of resource economics and international diplomacy. While still under development, its potential is already reshaping how Pakistan might engage with trade partners like the United States. As global demand for copper intensifies, so too will the value of leverage held by resource-rich nations. Whether Islamabad can translate mineral wealth into diplomatic capital remains to be seen—but the conversation has clearly begun.

Author: Ricardo Goulart