Key facts
- The Saindak copper and gold mine in Pakistan, a major Chinese investment, is threatened by militant attacks disrupting supply lines.
- The mine's operator warned that production could halt within a month if security does not improve.
- The attacks are primarily targeting transportation routes in the restive Balochistan province.
- The mine is a significant source of copper exports for Pakistan, generating about $750 million last year.
- The Baloch Liberation Army (BLA) is among the groups targeting infrastructure linked to the China-Pakistan Economic Corridor (CPEC).
The Saindak copper and gold mine, a key Chinese investment in Pakistan, is facing a potential shutdown due to escalating militant violence in the Balochistan province. The mine's operator, Saindak Metals Limited (SML), has warned the Pakistani government that operations could cease within 30 days if the ongoing disruption of supply routes persists.
In a letter to the Ministry of Energy, SML highlighted that the 'prevailing law and order situation' has severely impacted the transportation of essential project cargo and production materials, making continuous operations untenable. The mine, jointly operated by China's Metallurgical Corporation of China (MCC) and Pakistan's SML since 2001, is a significant contributor to Pakistan's copper exports, generating approximately $750 million last year. Almost its entire output is shipped to China.
The remote location of the mine in Balochistan, a region experiencing a separatist insurgency, makes it vulnerable. Insurgent groups, including the Baloch Liberation Army (BLA), have intensified attacks on infrastructure, including those linked to the China-Pakistan Economic Corridor (CPEC), which includes mines and transport routes. The BLA views foreign resource extraction as a form of exploitation.
Beijing has reportedly exerted pressure on Islamabad to enhance security for Chinese personnel and assets in Pakistan. While Pakistani authorities have increased counter-insurgency operations, attacks continue, indicating the insurgency's persistent operational capability. The situation at Saindak is seen as a bellwether for regional stability and China's broader investment strategy in Pakistan.