Pakistan’s long-delayed Reko Diq copper-gold project has secured a fresh injection of international financing, with the Asian Development Bank (ADB) approving a $410 million package to support its development.
The funding marks a significant step for the $6.6 billion mine in Balochistan, which holds one of the world’s largest untapped copper and gold deposits. Operated by Canadian miner Barrick Gold, Reko Diq is expected to begin production in 2028 and could generate an estimated $70 billion in free cash flow over its lifetime.
What the ADB Deal Includes
The package consists of two loans worth $300 million to Barrick, alongside a $110 million partial credit guarantee that will cover the equity share of the Balochistan government. The mine is jointly owned—Barrick controls 50%, while Pakistan’s federal and provincial governments hold the rest.
This latest financing adds to an earlier $700 million commitment from the International Finance Corporation, the World Bank’s private sector arm. Project officials are also in talks with other lenders, including the US Export-Import Bank, Export Development Canada, and Japan’s JBIC.
Why Reko Diq Matters
When fully developed, Reko Diq is projected to become the world’s fifth-largest copper mine. In its initial phase, it will produce around 800,000 tonnes of copper concentrate each year. That scale is particularly relevant as global demand for copper surges, driven by renewable energy technologies, electric vehicles, and digital infrastructure.
ADB President Masato Kanda framed the investment as a win beyond Pakistan’s borders, saying the project will “strengthen critical mineral supply chains, advance clean energy transition, and fuel digital innovation globally.”
Pakistan’s Broader Goals
For Islamabad, the project is more than just a mining venture. Officials hope Reko Diq will serve as a signal to international investors that Pakistan’s mineral sector—long overlooked due to political and legal uncertainty—is open for business.
The country has already drawn interest from foreign governments, including the United States, which has shown particular attention to rare earth prospects. By anchoring its mineral ambitions on a project of this scale, Pakistan is aiming to diversify its economy and reduce reliance on imports and debt.
From Legal Deadlock to Global Player
The Reko Diq mine had been stalled for years by a legal dispute, only resolved in 2022. Its revival is now positioned as a potential game-changer for Pakistan’s economy. Barrick has suggested the mine could operate well beyond its planned 37-year life span if upgrades and new exploration continue.
If successful, the project will not only reshape Balochistan’s local economy through jobs and infrastructure but could also cement Pakistan as a key player in the global supply of copper—a mineral at the heart of the world’s green transition.
