Karachi, August 19, 2025: State-owned exploration giants Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) have revised upward their funding commitments for Phase 1 of the Reko Diq copper-gold project, increasing each company’s pro-rata share to $715 million. The revision reflects updated project estimates, higher financing costs, and inflation adjustments.
After accounting for project-level financing, the expected shareholder contributions for both OGDCL and PPL now stand at $391 million each, according to separate notices filed with the Pakistan Stock Exchange (PSX) on Tuesday.
OGDCL, PPL, and Government Holdings (Private) Limited (GHPL) each hold 8.33% stakes, collectively making up a 25% interest in Reko Diq Mining Company (RDMC) through Pakistan Minerals (Private) Limited. The Government of Balochistan owns 25% (15% fully funded and 10% free carried), while the remaining 50% is held by project operator Barrick Mining Corporation.
Initially, in March 2025, OGDCL and PPL had approved commitments of $627 million each, but estimates were revised following lender negotiations and recommendations by an independent technical consultant. The Phase 1 development cost was revised due to a six-month delay in production—now expected in 2029 instead of 2028—along with higher contingencies. Project financing has also risen to $3.5 billion, up from the earlier $3 billion.
Despite the revisions, the companies said the project remains economically viable. Both boards have also approved the SOE Completion Agreement, requiring state-owned enterprises to jointly guarantee 27.78% of RDMC’s secured debt obligations until financial completion, and a Transfer Restrictions Agreement, mandating minimum shareholding until debt repayment.
The commitments are subject to shareholder and regulatory approvals. Once operational, Reko Diq is expected to rank among the world’s leading copper-gold mines, playing a pivotal role in Pakistan’s economic development.
