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Showing posts sorted by date for query BALOCHISTAN IS A COUNTRY. Sort by relevance Show all posts

Wednesday, April 22, 2026

 The Islamabad Pivot and the Rise of the Global South’s Diplomatic Order



 April 21, 2026

Islamabad’s verdant cityscape merges with the Margalla Hills. Ali Mujtaba – CC BY-SA 4.0

The collapse of the U.S.-Iran talks in Islamabad this week, followed swiftly by Washington’s announcement of a maritime blockade of the Strait of Hormuz, has been widely framed as a return to the familiar patterns of the maximum pressure era. Yet, to view these events solely through the lens of a bilateral failure is to miss a more profound structural shift in global diplomacy. Although the negotiations may have stalled after 21 hours of grueling deliberation between JD Vance and Abbas Araghchi, the venue and the process revealed a significant reality: the center of gravity for international dispute resolution is moving away from the West.

For decades, major diplomatic breakthroughs in the Middle East were synonymous with American soil or European capitals. From Camp David to the Green Tree Accord, the script was predictable: the United States acted as the indispensable mediator, providing the security guarantees and the economic carrots to bring parties to the table. However, the Islamabad talks represent a departure from this historical monopoly. By choosing a South Asian capital as the primary corridor for high-stakes engagement, the international community has effectively recognized a new Islamabad Blueprint defined by Global South mediation rather than Western dictate.

In this current geopolitical climate, the effectiveness of a superpower is no longer measured by its ability to coerce but by its capacity to collaborate. As the Islamabad Blueprint suggests, the future of global stability rests on the shoulders of those who choose the hard work of mediation over the easy path of confrontation. Pakistan’s recent efforts to facilitate a second round of talks underscore this shift. Islamabad is not merely providing a room; it is providing a regional legitimacy that Washington can no longer manufacture on its own.

The failure to reach a deal in Islamabad is being blamed on what Iranian officials describe as excessive demands from the U.S. delegation. Specifically, the insistence on widening the scope of the talks to include non-nuclear regional issues at the eleventh hour suggests a lack of the flexibility required for modern diplomacy. In contrast, the role played by Pakistan, supported quietly by China, Turkey, and Saudi Arabia, focused on a more pragmatic, incremental approach. This group sought to establish a stability anchor based on shared economic interests, particularly the security of energy corridors that are vital to the developing world.

The contrast in methodology is striking. The U.S. approach remains rooted in a zero-sum logic of sanctions and blockades. Within 12 hours of the talks’ dissolution, the White House shifted toward a policy of intercepting vessels. This is a tactic that ignores the changed economic landscape of 2026. Today, a blockade is not merely a military maneuver; it is a direct assault on the energy security of neutral nations across Asia and Africa. By weaponizing the sea lanes, Washington is inadvertently accelerating the very trend it fears most: the transition to a multipolar financial system where the petrodollar is no longer the sole arbiter of trade.

The economic fallout of this rigid unilateralism is already visible. As oil prices climb again toward $100 per barrel following the blockade announcement, the America First strategy is increasingly becoming America Alone. By treating the Strait of Hormuz as a chessboard for containment rather than a global artery, Washington risks alienating the very allies it needs to maintain a coherent international order. The Global South sees this not as a defense of freedom of navigation but as an act of economic piracy that prioritizes tactical leverage over global stability.

China’s role in this evolving landscape is particularly instructive. Unlike the transactional nature of the Western approach, Beijing has spent the last year fostering what it calls a community of shared future. While the United States remains preoccupied with naval destroyers and sanctions lists, China has focused on building infrastructure and technological resilience. The recent deployment of embodied AI for high-risk industrial tasks in the region is a case in point. It serves as a reminder that while one power is looking to close corridors, the other is looking to build the systems that make those corridors more efficient and safe.

This is the essence of the new diplomatic reality. The Islamabad Blueprint signifies that the Global South is no longer content to be a passive theater for great power competition. Countries in the region are now active stakeholders, providing the neutral ground and the creative frameworks necessary for dialogue. Even if the current ceasefire—slated to expire on April 22—is fragile, the fact that the United Staters felt compelled to negotiate in Islamabad, rather than forcing the Iranians to meet in a European capital, is a concession to this new order.

The world is headed toward a pluralistic diplomatic ecosystem. In this new world, the legitimacy of mediators is derived from their ability to provide stability and development, not just their capacity to exert military force. As Washington returns to its toolkit of blockades, it may find that the rest of the world has already moved on, seeking security in the new corridors of the East.

The lesson of the last few days is not that peace is impossible, but that the old ways of achieving it are increasingly obsolete. The Islamabad talks, despite their current impasse, have shown that a new group of mediators is ready to fill the vacuum left by the West’s retreat into unilateralism. For the global community, the task now is to ensure that these new diplomatic pathways are strengthened, providing a much-needed alternative to the cycle of pressure and conflict that has dominated the last century. If the Islamabad Process can survive this week’s naval posturing, it may yet provide the definitive map for a post-unipolar world.

This first appeared on FPIF.

Imran Khalid is a geostrategic analyst and columnist on international affairs. His work has been widely published by prestigious international news organizations and publications.

Pakistan: How a regional warmonger came to host US-Iran peace talks


iran us peace talks pakistan

Mainstream Pakistan is basking in (self)glory. As host of the US-Iran negotiations — rumours of a second-round abuzz — Islamabad is upbeat. From talk show hosts to YouTube influencers, the one-dimensional message is clear: Pakistan has finally been assigned the role it deserves in the global hierarchy.

International Relations (IR) academics, otherwise considered irrelevant by the know-all legacy media, are dotting the screens and op-eds. Perhaps one of these IR scholars introduced the media to Giovanni Botero’s 16th century notion of a “middle power.” In any event, the urban middle classes and Twitterrati have enthusiastically embraced Botero’s otherwise vague concept.

That traditional rival India is not just absent in the negotiations but burning with jealousy is the icing on the cake for the media, the chauvinistic middle classes and, of course, the state managers. In my opinion, this is the second most important “moment of glory” for the country’s ruling class, since hosting the Islamic Summit in 1974. However, this time around, it is an event of an even bigger consequence.

The question, however, remains: what has catapulted Islamabad, temporarily at least, to the status of “global peacemaker”, Scandinavian-style? The India-Pakistan conflict in May last year apparently endeared the Pakistani leadership to United States President Donald Trump. Yet, this is an inadequate explanation.

Foreign policy as bread and butter

Pakistan is a country that survives and thrives on foreign policy. The Pakistani ruling class learnt the art of banking on and cashing in geostrategic benefits, whenever an opportunity presented itself, back during the Cold War. Back then, they grasped the diplomatic art of balancing relations between rival powers. For example, Pakistan has friendly relations with China and the US. In 1970, Pakistan facilitated secret Sino-US negotiations, paving the way for diplomatic relations. However, Pakistan has also, on occasions, annoyed both the powers.

Pakistan is hosting the present peace talks only 150 kilometres from Abbottabad, where Osama bin Laden was hunted down on May 2, 2011. Several Taliban commanders and their families, post-9/11, were also residing in Islamabad, a stone’s throw from the US embassy. Beijing has its own grievances against Pakistan. The biggest Chinese resentment, presently, is Islamabad’s attempt to hinder China’s Belt & Road Initiative (BRI) project in Pakistan. The deadly attacks on Chinese nationals employed in huge Chinese projects have at times driven otherwise polite Communist Party of China bureaucrats to publicly reprimand Islamabad.

Likewise, since 1979, Pakistan has managed good relations with Riyadh as well as Tehran. But in each case, irritants and disagreements persist. Tehran has been unhappy over state-patronage lent to anti-Shia militant outfits, responsible for mass violence against Pakistan’s Shia citizens (there was spillover in Afghanistan too). In January, Iran fired missiles and sent drones to attack Pakistan’s Balochistan province. Pakistan, before announcing a truce, repaid in kind.

Mohammed bin Salman, likewise, was incensed by Islamabad’s refusal to dispatch Pakistani troops to fight in the “jihad” against “Houthi rebels” in 2015. Yet, on April 16, Pakistan’s prime minister, Shahbaz Sharif was warmly received by MBS. Shahbaz Sharif speaks broken-Arabic, largely to impress domestic audiences. He learnt Arabic when his family was exiled to Saudi Arabia by the military in 2001.

Iranian foreign minister Abbas Araghchi welcomed Pakistan’s military czar Asim Munir to Teheran on April 16. As Pakistan is a garrison state, military chiefs have command over troops and civilian affairs. Munir’s visit received greater coverage in the Pakistani media than Sharif’s trip to Jeddah. There is a reason for this difference. Not unlike economy and politics, foreign policy also falls within the domain of Pakistan Army’s General Headquarters. Most importantly, the military (manpower, technology) is also Pakistan’s most important diplomatic manoeuvre and valuable export.

A clever client

Pakistan is a client state, but a clever one. It is one thing whether their policies benefit Pakistani citizens, but state managers have successfully peddled their international interests. Owing to their ability to stay effective internationally, they have gained and maintained access to global and regional corridors of power. This access can apparently be explained by a lucky mix of history and geography (more below). During the recent Israeli-US war on Iran, they successfully deployed this as self-interest was involved.

For the past several days, there have been power cuts every second hour. This is because electricity is largely produced from imported oil. Sectarian tensions are another headache for the ruling class. The attacks on the US consulate in Karachi on March 1, in the wake of Iranian leader Ali Khamenei’s assassination, and the large-scale unrest in Gilgit-Baltistan have made global headlines. However, the sectarian aspect went missing in the global and local coverage, for understandable reasons. The attack on the US Consulate was mounted by Shia youth, while Gilgit-Baltistan is a Shia-dominated region (though not all Shia belong to the Ithna Ashari branch).

Given a near-universal anti-Americanism and widespread dislike for Israel, support for Iran during the month-long invasion cut across the sectarian divide. Field Marshal Munir summoned top Shia clerics to warn against any further agitation. His advice to clerics who preferred Iran over Pakistan’s national interests was to “migrate to Iran”. Though his advice was justifiably censured, Munir’s warning was indicative of the ruling elite’s worries.

Meantime, every missile Iran fired at the Gulf sheikhdoms unnerved Islamabad. While Pakistan cannot annoy Tehran, it can hardly afford the wrath of Arab Sultans either. After China, the Gulf states (collectively) are Pakistan’s largest lenders, if one takes into account Pakistan’s bilateral debt. Equally important are the millions of Pakistanis working in the Gulf states, who constitute the largest source of remittances. This diaspora in the Arabian Peninsula, often working in slave-like conditions, keeps the Pakistani economy afloat.

Ironically, while Pakistan was playing the role of peacemaker internationally, China was hosting a week-long round of talks between Kabul and Islamabad, and relations with India remain fraught. Pakistan is neither a peace-maker by ideology or necessity. The Pakistani state’s ideological basis rests on an enmity with India. Present tensions with Kabul are partly an extension of this India-centric approach. Islamabad is furious that the Taliban regime has been cosying up to New Delhi (among other factors). Pakistan may seek to play the role of peacemaker globally but regionally it acts as a warmonger.

Roots of cleverness

Balancing powerful global or regional rivals is not a specifically Pakistani achievement. There are other case studies of a client state pleasing competing patrons. However, the specificity of the Pakistani elite is the fact that they manage it all this time. What explains this clever “ability”?

A combination of the following factors has allowed the ruling clique to perform as a clever client.

  • The state’s garrison character. In a democracy, even when it is highly flawed, a ruling dispensation can not afford unpopular decisions. Foreign policy makers in Pakistan, however, are not answerable to any electorate.
  • Pakistan has a military equipped with nuclear capacity. While Pakistan has sent troops to the Gulf states, its top nuclear scientists have helped Iran and Libya build their nuclear programs.

Pakistan foreign policy scholars usually refer to Pakistan’s geography and the Cold War as an explanation for its foreign policy. On the contrary, the state’s character is the defining factor. A Pakistani state with a different ideology or dispensation would have behaved differently, despite geography.

The claim that Pakistan survives and thrives via its foreign policy is made from the ruling classes’ viewpoint. From the citizens’ perspective, Pakistan’s foreign policy failures are damningly visible when it comes to the neighbourhood. For instance, the post-9/11 policy of running with the hare (Taliban) and hunting with the hound (Washington) turned Pakistan into “Terroristan”. The wave of terror that swept Pakistan after September 11 claimed more than 70,000 lives. The blowback, in the form of the Pakistani Taliban, continues to claim hundreds of lives annually even now.

It is, likewise, a huge failure of diplomacy if a state can not live peacefully with its neighbours, as is Pakistan’s case. While peace with all four neighbours is vital and desirable, it is not on the horizon in the case of India (and Afghanistan) for two reasons. First, as highlighted above, Pakistan identifies itself ideologically as India’s nemesis. Pakistan has no plans to shed this identity anytime soon. Second, the Hindu fundamentalist BJP presently ruling India, with an almost unchallenged hegemonic hold over Indian society, also thrives on anti-Muslim and anti-Pakistan politics. Hence, the outlook is not optimistic for the foreseeable future.

Most importantly, by facilitating these peace talks, the hybrid regime in Pakistan is no doubt building itself a good image that will help legitimise it, even if it was a product of rigged elections. The better image it has internationally, the more repressive it is likely to be domestically.

Farooq Sulehria is the editor of Pakistan’s Foreign Policy and Strategic Relations in the Twenty-First Century, forthcoming for Palgrave Macmillan.

Sunday, April 12, 2026

 

Pakistan’s Ghazab Lil-Haq operation and the prospect of regime change in Afghanistan

Pakistan’s Ghazab Lil-Haq operation and the prospect of regime change in Afghanistan
Taliban forces in Afghanistan found themselves under attack from Pakistan's Operation Ghazab lil-Haq (Righteous Fury). Does Kabul have plans to try to push its military action all the way to regime change? / mod.gov.afFacebook
By Syed Fazl-e-Haider April 11, 2026

On February 26, Pakistan launched Operation Ghazab lil-Haq (Righteous Fury) against the Taliban regime in Kabul. The operation is seen by some as an attempt by Islamabad to pursue regime change in Afghanistan.

Under Taliban rule, Afghanistan has effectively become a base for terrorist activities targeting not only Pakistan but also other Central Asian states, including Tajikistan. Russia has warned that Afghanistan-based ISIS seeks to expand its so-called caliphate in Central Asia, while China has expressed concern over the presence of Uyghur militants and other anti-China groups in the country. In this context, regime change in Kabul has emerged as a strategic priority for Islamabad and Beijing.

Meanwhile, the persistence of terrorist safe havens in Afghanistan and the ongoing war has stalled major trans-Afghan connectivity projects intended to link Central Asia with Pakistani seaports. 

BACKGROUND

Since 2021, following the Taliban’s takeover of Afghanistan after the US withdrawal under the Doha Agreement, Pakistan has experienced a significant increase in terrorist attacks. Islamabad has accused Afghanistan-based militant groups of conducting cross-border operations within its territory.

Prominent among these are Tehreek-e-Taliban Pakistan (TTP) and the Balochistan Liberation Army (BLA), which have been responsible for numerous high-profile attacks. Pakistan has repeatedly urged the Taliban government to take action against these groups, which continue to operate from Afghan territory with relative impunity; however, these requests have largely gone unheeded.

China, which shares a 47-mile (76-kilometre) border with Afghanistan, has long been concerned that the country could become a sanctuary for Uyghur separatists in proximity of its Xinjiang region.

The Taliban government has assured Beijing that Afghan territory will not be used for activities against China. In return, China has offered economic assistance and investment to support Afghanistan’s reconstruction and development and has since emerged as the largest foreign investor in the country.

Other anti-China groups operating from safe havens in Afghanistan include the TTP and the BLA. Both organisations have been implicated in several high-profile attacks targeting Chinese nationals in Pakistan.

In March 2024, a suicide attack on a van killed five Chinese engineers working on the Dasu dam project in Khyber Pakhtunkhwa. A similar attack at the same site in 2021 resulted in the deaths of nine Chinese engineers. The TTP was implicated in both incidents. The BLA, in turn, has conducted more attacks on Chinese nationals and assets than any other separatist organisation.

Notably, in 2022, the BLA deployed its first female suicide bomber, who carried out an attack outside the Confucius Institute at the University of Karachi, killing three Chinese instructors.

Although China has pursued a pragmatic engagement policy toward the Taliban since the US withdrawal in 2021, investing in mining, energy, and infrastructure, the Taliban have shown limited willingness or capacity to dismantle militant networks such as the TTP and BLA operating from Afghan territory.

Tajikistan, which shares a 1,400-kilometre (870-mile) border with Afghanistan, has also been affected by cross-border militancy. In two separate incidents in November 2025, five Chinese nationals were killed. Additional casualties resulted in subsequent clashes between Tajik security forces and suspected militants attempting to infiltrate Tajik territory.

Russia, the only country that has formally recognised the Taliban regime in Afghanistan, has expressed concern that the regime undermines regional stability by allowing jihadist groups to operate from Afghan territory. These concerns intensified following a suicide attack on February 24 outside Moscow’s Savyolovsky Railway Station, which killed a police officer. Foreign Minister Sergey Lavrov linked the incident to Afghanistan-based groups. 

The Russian Ministry of Foreign Affairs has estimated that Afghanistan hosts between 20,000 and 23,000 militants, including approximately 5,000 to 7,000 affiliated with the TTP. Notably, Russia released this assessment of terrorist networks in Afghanistan two days before Pakistan initiated its military campaign against the Taliban, a move that may be interpreted as implicit political support.

The Taliban have also moved closer to Pakistan’s regional rival, India. Islamabad has alleged that groups such as the TTP and BLA operate as Indian proxies, a claim that New Delhi denies. The Taliban’s growing engagement with India has further raised concerns in Beijing.

Amid mounting frustration over the Taliban’s inaction against militant groups operating from Afghan territory, Pakistan launched a large-scale military operation against the Taliban government on February 26, involving airstrikes across major Afghan cities, including Kabul.

IMPLICATIONS

Operation Ghazab lil-Haq can be interpreted as an attempt to impose regime change in Kabul, though Pakistan is unlikely to achieve such an objective independently, without securing China’s support and involving Tajikistan. It must also obtain backing from anti-Taliban groups such as the National Resistance Front (NRF), led by Tajik leader Ahmad Massoud, son of the late Ahmad Shah Massoud. Tajikistan presently hosts the NRF leadership.

Pakistan’s airstrikes against the Taliban regime may create opportunities for the NRF and other opposition forces to weaken the Taliban’s internal control over Afghanistan.

Officially, Beijing has called on both Islamabad and Kabul to exercise restraint and has advocated a ceasefire. However, Pakistan’s ongoing military campaign against the Taliban likely carries tacit Chinese approval and support for a potential regime change effort.

For such an operation, Islamabad would first need to secure control over the Wakhan Corridor in northeastern Afghanistan. This narrow strip of territory, often referred to as Afghanistan’s “Chicken Neck,” extends approximately 350 kilometres (217 miles) to China’s Xinjiang region, separating Tajikistan from Pakistan. Control of the corridor would provide Pakistan with direct access to Tajikistan and Central Asia beyond Afghanistan.

For China, the Wakhan Corridor represents a critical node for safeguarding its strategic connectivity with South and Central Asia under the Belt and Road Initiative (BRI). While China appears to be adopting a cautious, “wait and watch” approach, Pakistan is actively seeking to reshape Afghanistan’s political landscape.

The Pakistan–Afghanistan conflict is likely to adversely affect trans-Afghan connectivity projects aimed at linking Central and South Asia, whether in the planning, negotiation or implementation stages. For example, regional connectivity featured prominently in Pakistan–Kazakhstan discussions during President Kassym-Jomart Tokayev’s visit to Islamabad in February 2026. A proposed $7bn railway project envisaged connecting Kazakhstan to the Pakistani ports of Karachi and Gwadar via Afghanistan and Turkmenistan.

Similarly, the Uzbekistan–Afghanistan–Pakistan (UAP) railway project is a trilateral initiative designed to connect Central Asia with the ports of Gwadar and Karachi through Afghanistan. Envisioned in 2021, the 528-kilometre corridor is expected to provide the first direct railway link between Central and South Asia. The $4.8bn project, scheduled for completion by 2027, will connect Tashkent to the Pakistani city of Peshawar via Kabul.

The $10bn Turkmenistan–Afghanistan–Pakistan–India (TAPI) gas pipeline is a major strategic energy project intended to transport gas from Turkmenistan’s Galkynysh field, the world’s second largest, to energy-deficient markets in South Asia, particularly India and Pakistan. However, the project has already been delayed for over three decades due to persistent instability and conflict in Afghanistan.

Any attempt at regime change in Kabul that ensures peace and stability in Afghanistan would facilitate a conducive environment for the implementation and completion of strategic connectivity projects between Central and South Asia. Conversely, if such efforts intensify conflict in the already war-torn country, these projects are likely to face indefinite delays.

CONCLUSIONS

Officially, Islamabad frames its military campaign as an effort to compel the Taliban regime to withdraw support for Afghanistan-based militant groups targeting Pakistan. However, the operation also appears intended to convey that regime change is a clear option, should the Taliban fail to take verifiable action against such groups operating from Afghan territory.

For a comprehensive regime change effort, Pakistan, China, and Tajikistan would have to align their positions on the jihadist threats emanating from Afghanistan, which, after more than four years of Taliban rule, has effectively become a safe haven for militant groups. The outcomes of the current operation will in turn have a significant impact on the future of trans-Afghan connectivity projects.

This article was originally published by the Central Asia-Caucasus Analyst and is reprinted under a partner post arrangement with Eurasianet. It appears in Eurasianet here.

Syed Fazl-e-Haider is a Karachi-based analyst at Wikistrat. He is a freelance columnist and the author of several books. He has contributed articles and analysis to a range of publications. He is a regular contributor to Eurasia Daily Monitor, Jamestown Foundation. Email: sfazlehaider05@yahoo.com.

Saturday, April 04, 2026

CU

Barrick warns of “significant increases” to budget, timeline for Pakistan copper project


Barrick’s 50% Reko Diq copper-gold project in Pakistan. (Image: Barrick’s presentation.)

Barrick Mining (NYSE:B)(TSX:ABX) said on Thursday that it anticipates that there could be “significant increases” to the previously disclosed total estimated capital budget and timeline for its Reko Diq copper project in Pakistan.  

On March 26, Barrick said it will slow its development of the Reko Diq deposit and extend the project’s review period, citing security concerns in the Middle East. 

Reko Diq, one of the world’s largest undeveloped deposits of the metal, is in the remote, insurgency-hit western province of Balochistan and held in an equal partnership between the company and the Pakistani authorities. 

The previously disclosed total estimated capital cost of Phase 1 was between $5.6 billion and $6.0 billion (100% basis, exclusive of capitalization of financing costs) and of Phase 2 was between $3.3 billion and $3.6 billion (100% basis, exclusive of capitalization of financing costs), with first production targeted by the end of 2028. 

“Barrick continues to believe in the long-term value of Reko Diq. Following the preliminary findings of the review and the further escalation of security issues in Pakistan and the region, the company considers it necessary to slow the development activity and continue the project review until mid-2027,” the Canadian miner said in a statement released just after market close in Toronto.  

Barrick has viewed Reko Diq — with an estimated 15 million tonnes of copper reserves — as a key pillar of its strategy to become a Tier 1 producer of the metal. 

The continued review will allow the company to assess in a comprehensive manner the evolving security situation, capital requirements, project financing, project scope and timeline, it said.  

“While development activity will be slowed, the project will remain under active management with a reduced capital spend,” Barrick said.  “Development of Phase 1 of the Reko Diq project was approved on this basis. Barrick recognizes its important role in the local community and intends to continue to invest in and honor its existing in-country community and social programs.” 

Barrick, which has been developing the project in partnership with the governments of Pakistan and Balochistan for years, initially planned for the project to come online in 2028, subject to financing.   

Once operational, the mine is forecast to generate over $70 billion in free cash flow and $90 billion in operating cash flow over a 37-year lifespan. 

No sign yet of China’s plan to cut copper output in major smelters’ results

Stock image.

Major Chinese copper smelters are planning to raise or maintain output in 2026, their earnings outlooks show, despite a public commitment by the state-linked industry association last year to cut production by over 10%.

The China Smelter Purchase Team (CSPT), a group of 16 of the top copper smelters, agreed last year to cut production to counter overcapacity amid falling processing fees for copper concentrates.

But there’s no sign of output cuts in guidance issued by three major smelters, all CSPT members, as part of annual earnings over the past few weeks.

Jiangxi Copper, China’s top copper smelter, raised 2026 production guidance for copper cathodes to 2.39 million metric tons, up from 2.38 million tons produced in 2025.

Similarly, Yunnan Copper increased its 2026 guidance to 1.71 million tons, up from 1.64 million tons produced last year.

Daye Nonferrous, which published its 2025 results on Wednesday, flagged a slight drop in 2026 to 713,000 tons, from output of 716,000 tons for last year.

The three smelters produced a third of the country’s 14.72 million tons of refined copper last year.

The production cut announcement last year was made as treatment and refining charges (TC/RCs), which are traditionally paid by miners to smelters to process copper concentrates, collapsed in 2025 due to tight supply of the feedstock, leaving smelters having to pay miners.

The CSPT did not set quarterly TC/RC guidance for the fifth time in a row this week. The figure traditionally served as a benchmark for spot copper concentrate deals in China.

Negative fees have left Chinese smelters relying on by-product profits, especially sulphuric acid. Sales of sulphuric acid, for example, accounted for 14.65% of total gross profit of Jiangxi Copper, more than the gross profit from copper rod and wire and finished copper products combined in 2025.

(By Lewis Jackson and Dylan Duan; Editing by Sonali Paul)


Chinese copper miners join $1.2 billion African rail revamp

Tanzania Zambia Railway. Stock image.

Chinese mining, shipping and logistics companies are joining a $1.24 billion project to revamp a railway linking Zambia’s copper region to a port on the Indian ocean.

Copper producers CMOC Group Ltd. and Zijin Mining Group Co. are teaming up with state-owned China Civil Engineering Construction Corp., or CCECC, to upgrade the 1,860-kilometer (1,156-mile) rail line that runs to Dar es Salaam in Tanzania.

CCECC – which signed a deal with Zambia and Tanzania in September to rehabilitate the so-called Tazara railway – will retain an 80% interest in the joint venture undertaking the project, according to a statement on Wednesday from Jiayou International Logistics Co., one of four firms taking 5% stakes. The other three are units of Zijin, CMOC and COSCO Shipping Holdings Co., Jiayou said.

The backing for the Chinese project comes as Washington tries to loosen Beijing’s grip on supply chains for critical minerals in Africa. The US concluded a bilateral minerals partnership with the Democratic Republic of Congo in December that grants American companies preferential access to some of the country’s abundant reserves of metals.

The Tazara link — originally built with Beijing’s assistance under Mao Zedong in the 1970s — will compete with the Lobito Corridor, a rail project backed by the US and European Union. That railway connects the same copper-rich region of central Africa to an Angolan port on the west coast of the continent.

CMOC and Zijin are among the Chinese miners that dominate metal exports from Congo, the world’s No. 2 copper producer and the biggest source of battery material cobalt. By contrast, Western firms – particularly Canada-headquartered First Quantum Minerals Ltd. and Barrick Mining Corp. – account for most output in neighboring Zambia.

Tanzania and Zambia granted CCECC a 30-year concession to operate the line. Once completed, the rehabilitated infrastructure will ease congestion on roads in Zambia and Congo, from where most mineral cargoes are currently trucked over long distances to African ports.

The Chinese companies will invest in the Tazara project according to the size of their interests in the Dubai-registered joint venture entity, according to Jiayou, which will contribute $62.2 million. The partners will operate freight services on the line after renovating the railway and purchasing equipment including locomotives and containers, it said, adding that the project still needs to complete the approval and filing process with China’s government.

The investments reflect a shift in China’s Belt and Road Initiative to increasingly partner with private companies to operate projects on commercial terms.

State-owned COSCO is China’s largest container line, while Jiayou is the majority owner of one of Zambia’s biggest trucking firms and is developing road concessions in the country. Zijin is also Jiayou’s second-biggest shareholder, with a 17.5% stake in the group.

Washington’s pact with Congo recognizes the “strategic nature” of the Lobito Corridor and aims to increase the volume of minerals exported to the US and its allies using the railway.

(By William Clowes, Annie Lee and Matthew Hill)

Ivanhoe stuns market with deep Kamoa-Kakula output cut


Installation of the Stage Two submersible pumps at Kamoa-Kakula. (Image courtesy of Ivanhoe Mines.)

Ivanhoe Mines (TSX: IVN) has slashed near-term production guidance for its flagship Kamoa-Kakula copper complex in the Democratic Republic of Congo, surprising analysts and resetting investor expectations.

The company now expects 2026 copper anode output of 290,000 to 330,000 tonnes, down from 380,000 to 420,000 tonnes, while 2027 production will reach 380,000 to 420,000 tonnes versus a prior projected 500,000 to 540,000 tonnes.

Ivanhoe released the update after markets closed Tuesday, citing a shift toward underground development, rehabilitation and access work that will constrain ore delivery over the next 18 to 24 months. The company also raised expected cash costs, compounding the weaker outlook.

“The headline takeaway was a material reset to near-term expectations,” Jefferies analyst Fahad Tariq said in a note, adding that investors were not anticipating the downgrade. “We view the update as a clear acknowledgment that operational challenges at Kakula are taking longer to resolve than initially envisaged, pushing volume recovery further out.”

At the core of the revision is a new reserve model that cut contained copper by 24.7% and reduced reserve grade by 28%, reflecting more conservative assumptions, lower cutoff grades and revised mine sequencing. Ivanhoe now caps underground extraction rates at about 60%, down from 70% to 80% or higher, as it widens pillars and excludes inaccessible areas to improve long-term stability.

The reset underscores a broader trade-off facing large mining projects: sacrificing short-term output to secure more reliable, efficient production over time, forcing investors to recalibrate expectations.

Key ramifications

BMO analysts said the reserve update appears conservative but carries more significant implications for near-term production and valuation, largely due to the lower grade profile.

“The reserve update for Kakula/Kamoa came in below both the market’s and our expectations,” analyst Andrew Mikitchook wrote. “The largest impact on valuations comes from a 28% decrease in reserve grade.”

BMO cut its price target on Ivanhoe shares to $16 from $23, citing weaker near-term output and revised long-term assumptions. Year-to-date, the stock is down almost 35%, trading at $10.51 on Wednesday for a market capitalization of $11.8 billion (C$15B).

The bank also highlighted a planned redevelopment of the complex in 2026 and 2027, aimed at enabling broader and more efficient mining with faster backfill sequencing, though at the cost of reduced extraction rates in the interim.

Despite the downgrade, BMO said there is potential upside as Ivanhoe continues to refine its mine plan. Ongoing optimization work, including geotechnical drilling and further analysis of Kakula East, could lead to improved efficiency, with an updated prefeasibility and feasibility plan expected in the first quarter of 2027.

Jefferies similarly noted that mine plans for 2026 and 2027 now focus explicitly on development and rehabilitation rather than production, with slower advance rates and more conservative sequencing reducing ore delivery and raising costs in the near term.

Long-term outlook safe

Ivanhoe continues to target annual copper production exceeding 500,000 tonnes from 2028, positioning Kamoa-Kakula among the world’s largest copper operations.

The current redevelopment phase aims to unlock that scale by improving underground access, expanding mining areas and enabling more consistent extraction, even as it delays the ramp-up profile that had supported prior market expectations. Analysts said the company’s more cautious approach reflects a focus on long-term performance and stability after persistent operational challenges at Kakula.

Near-term sentiment will hinge on execution, including improved operating performance, timely redevelopment progress and clearer visibility on the next iteration of the mine plan, with signs of progress later this year likely key to rebuilding investor confidence.