The Reko Diq Mining Company is set to secure financial close after attracting nearly $6 billion in funding pledges, almost double the requirement for its first phase. The commitments include strong backing from the United States, Japan, and other international lenders, while the Asian Development Bank (ADB) and World Bank have already approved over $1 billion.
The ADB announced a $300 million loan for Reko Diq, which owns 100% of one of the world’s largest copper-gold mines in Balochistan, along with a $110 million partial credit guarantee for the Balochistan government’s equity component. ADB President Masato Kanda said the project would support global demand for critical minerals, boost Pakistan’s economy, and mark the largest foreign direct investment in the country’s history.
Read more: Pakistan’s First Economic Census Reveals More Mosques Than Factories
Phase one of the project, now estimated at $6.7 billion due to inflation and expanded scope, will require $3.5 billion in financing. Pakistan’s federal and provincial governments are responsible for about $3 billion combined, while Barrick Gold will arrange the remainder.
Beyond the ADB and World Bank, other pledges include $500 million, $1 billion from the US Export-Import Bank, and loans from the US International Development Finance Corporation, Export Development Canada, Germany’s KfW, and Japan’s Exim Bank, which pledged $500 million. Guarantees from Euler Hermes, Finnvera, Sweden’s EKN, and Korea Exim are also on the table.
Read more: Banks Lead as PSX Closes Volatile Session Higher
Reko Diq is expected to begin production in 2028, with an estimated life of 37 years. Phase one will produce 800,000 tonnes of copper concentrate annually, doubling capacity by 2034. Over its lifetime, the project is forecast to generate $70 billion in net cash flow, create thousands of jobs, and fund healthcare, education, and community programs in Balochistan.
The mine, developed under strict environmental and social standards, is part of ADB’s new strategy to strengthen critical mineral supply chains essential for renewable energy, electric vehicles, and digital technologies.
