ISLAMABAD: Pakistan and its international partners are poised to achieve financial close within the next two weeks for the multibillion-dollar Reko Diq copper and gold mining project, securing $3.5 billion in funding to advance one of the country’s most significant resource ventures.
Sources confirmed that Pakistan has devised both Plan A and Plan B to ensure smooth execution of the project. Under the primary plan, financing is being arranged through lenders, while construction at the site has already begun, with machinery deployed even ahead of the financial close. A formal signing ceremony is expected in January.
A legal adviser representing the lenders briefed Petroleum Minister Ali Pervaiz Malik and Oil and Gas Development Company (OGDC) Managing Director Ahmed Hayat Lak, confirming that financing arrangements are complete and documentation is underway. Pakistan anticipates closing the deal within the next two weeks.
The update came during a meeting between the petroleum minister, OGDC leadership, and Munib Hussain, a London-based partner at Milbank, who represents the project’s financiers. Discussions also covered wider opportunities in Pakistan’s mining and oil & gas sectors, with all sides expressing commitment to advancing strategic investments.
Despite its vast potential, Pakistan’s mineral sector contributes only 3.2% to GDP, with exports accounting for just 0.1% of global mineral trade. The country spans 600,000 square kilometres of mineral-rich terrain, hosting 92 known minerals—52 of which are commercially mined—yielding around 68.52 million metric tons annually. The sector includes more than 5,000 mines and 50,000 SMEs, employing roughly 300,000 people.
Foreign interest in Pakistan’s mining industry continues to grow, driven by its largely untapped reserves. The Reko Diq project in Balochistan’s Chagai district—revived by Canada’s Barrick Gold—holds one of the world’s largest undeveloped copper deposits. With a $5.5 billion initial investment, the project is expected to begin production by 2028. Barrick Gold CEO Mark Bristow forecasts the mine will generate $74 billion in free cash flow over 37 years, contribute $2.8 billion annually in exports, and create thousands of jobs. Planned expansions aim to boost copper output to 400,000 tonnes and gold production to 500,000 ounces per year.
