ISLAMABAD: Pakistan’s flagship Reko Diq copper-gold project has secured over $5.5 billion in financing commitments from leading international financial institutions (IFIs), well above its actual requirement of $3.74 billion. The $7.48 billion venture, located in Balochistan’s Chagai district, is being developed under a 50:50 debt-to-equity model, with construction set to begin in December 2025 and commercial operations targeted for 2028.
The US Export-Import Bank has pledged about $1 billion, while the Japan Bank for International Cooperation (JBIC) will provide $300 million. Denmark’s export credit agency has also offered guarantees to support bank financing and equipment procurement. The IFC has committed $700 million, including a $400 million subordinated loan backed only by Pakistani SOEs, and the Asian Development Bank (ADB) has approved $300 million—its first mining-sector investment in over four decades.
Officials say only the most favourable loan terms will be selected, with financial closure expected by late September or early October 2025. Meanwhile, the Reko Diq Mining Company (RDMC) is ready to extend $400 million in bridge financing to accelerate railway links from the mine to Port Qasim, critical for future exports.
Projected to generate $74 billion in free cash flows over a 37-year mine life, Reko Diq is positioned as a cornerstone of Pakistan’s long-term economic strategy. RDMC—a joint venture of Barrick Gold (50%) and the governments of Pakistan and Balochistan (50%)—ensures the province holds a 25% stake, including a 10% free-carried interest.
“This isn’t just a mining project—it’s a transformational economic engine for Pakistan,” said a senior official.
Story by Khalid Mustafa
