ISLAMABAD: The United States Export-Import Bank has authorised up to $1.3 billion in financing for the Reko Diq copper and gold mining project in Balochistan province, marking a pivotal development for Pakistan's mineral sector. This allocation forms part of the broader Project Vault initiative, a $10 billion programme announced by President Trump in early February 2026 to establish a strategic reserve of critical minerals and protect domestic industries from supply disruptions. The decision highlights Reko Diq's strategic value in global efforts to diversify sources of copper and gold, metals vital for technology, renewable energy, and industrial applications.
The funding arrives as the Reko Diq project advances under a reconstituted partnership involving Barrick Gold Corporation of Canada, which holds a 50 per cent stake, alongside Pakistani federal and Balochistan provincial entities sharing the remaining ownership. Total estimated investment for the venture stands at approximately $7 billion, though earlier projections cited $3.2 billion for initial phases. Construction activities have commenced at the site, with commercial production targeted for 2028, promising annual output of around 200,000 metric tons of copper in the first phase, alongside substantial gold volumes over the mine's projected multi-decade lifespan.
Reko Diq, situated in a remote desert area near the Pakistan-Iran border, ranks among the world's largest undeveloped copper-gold deposits, containing an estimated 5.9 billion tonnes of ore with significant grades of both metals. The project's scale positions it to generate substantial economic benefits for Pakistan, including foreign exchange earnings through exports, job creation peaking at 7,500 during construction and sustaining 4,000 long-term positions, and infrastructure improvements in an underdeveloped region. Revenue sharing arrangements ensure benefits flow to federal and provincial governments, with potential free cash flows exceeding $70 billion over the mine's life according to operator estimates.
The US financing aligns with the Export-Import Bank's expanded mandate to support critical minerals extraction worldwide, as evidenced by recent authorisations for domestic and international projects. Alongside the Reko Diq commitment, approvals include $27.4 million for advanced metal powder production in Pennsylvania, $23.5 million for critical metals processing in Tennessee, $15.9 million for zinc mining in New York, and $11.1 million for titanium processing in Virginia. Over the past year, the bank has issued nearly $15 billion in letters of interest for similar initiatives, reflecting a concerted push to counter supply concentration risks, particularly from dominant global players.
This support emerges amid heightened geopolitical focus on critical minerals, essential for electric vehicles, batteries, artificial intelligence technologies, and defence applications. The 2026 Critical Minerals Ministerial hosted by the United States, attended by representatives from numerous countries including Pakistan, facilitated new bilateral frameworks and memorandums to address pricing, supply gaps, and financing access. Reko Diq's inclusion as the sole non-domestic project highlighted under Project Vault illustrates its perceived importance in Washington's strategy to reshape global mineral markets and enhance supply chain resilience.
Despite the positive momentum, the project faces ongoing challenges, including security concerns in Balochistan province that prompted Barrick Gold to initiate a comprehensive review of security arrangements, development timelines, and capital budgets in early 2026. Operator statements indicate the assessment is underway, with updates expected upon completion. Environmental and social impact assessments have received governmental approval, emphasising commitments to sustainable practices, though stakeholder concerns persist regarding local community impacts and resource management.
The US involvement is expected to accelerate progress toward production, bolster investor confidence, and contribute to Pakistan's ambitions for mineral-led economic growth. As one of the most significant foreign financing commitments for the project, it reinforces Reko Diq's role in international critical minerals diplomacy while offering Pakistan a pathway to harness its untapped resource potential responsibly.
