The Asian Development Bank (ADB) has approved a $410 million financing package to support the development of Pakistan’s Reko Diq gold and copper mine, one of the world’s largest untapped deposits.
The financing package includes two loans worth $300 million to Barrick Gold, the project’s operator, and a $110 million guarantee for the government of Pakistan, sources told Reuters ahead of the official announcement.
Located in Balochistan, the $6.6 billion project is jointly owned, with Barrick holding 50% equity, while the remaining share is split between the federal and provincial governments. Production of copper and gold is expected to commence by 2028, generating nearly $70 billion in free cash flow over its lifespan.
Reko Diq, long delayed due to legal disputes settled in 2022, will produce 200,000 metric tons of copper annually in its first phase, eventually doubling to 400,000 tons after expansion. Barrick has indicated the mine could extend beyond its initial 37-year life through upgrades and further exploration.
The project aims to raise over $2 billion in financing. It has already secured a $700 million agreement with the International Finance Corporation, the World Bank’s private investment arm. Discussions are also underway with the US Export-Import Bank, Export Development Canada, and Japan’s JBIC to broaden funding sources.
Officials in Islamabad see the mine as a flagship investment project, expected to attract broader foreign interest in Pakistan’s mineral sector, including future ventures in rare earth exploration.
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