ISLAMABAD: Pakistan’s long-delayed Reko Diq copper and gold project is set to achieve financial closure by the end of September or early October, in what officials describe as a landmark development for the country’s mining and investment landscape.
Located in Balochistan’s Chagai district, the project is expected to generate \$74 billion in free cash flows over its 37-year life, making it a cornerstone of Pakistan’s economic strategy. The Boards of OGDCL, PPL and GHPL have approved \$715 million in project costs, raising the total to \$7.48 billion. Despite the adjustment, authorities say the project will remain close to its original \$6.765 billion estimate through strict cost controls.
Construction is slated to begin in December 2025, with operations targeted for 2028. The financing structure, based on a 50:50 equity-to-debt ratio, ensures balanced participation between Barrick Gold (50%) and the governments of Pakistan and Balochistan (50%). Balochistan’s 25% stake includes a 10% free-carried interest and 15% fully funded share.
The International Finance Corporation has pledged \$700 million, including a \$400 million subordinated loan secured by Pakistani SOEs without sovereign guarantees. The Asian Development Bank has approved \$300 million—its first mining-sector loan in four decades—along with a \$110 million credit guarantee for Balochistan. Talks with US EXIM Bank, Export Development Canada, and JBIC are also progressing.
In parallel, the Reko Diq Mining Company will provide \$350–400 million to upgrade Pakistan Railways’ Main Line-2 and Main Line-3, ensuring efficient mineral transport to Port Qasim.
Officials say the project represents more than just mining: it is a “transformational economic engine” and one of Pakistan’s most significant public-private partnerships to date.
