ISLAMABAD: The Asian Development Bank (ADB) is set to provide a $410 million financing package to support the development of Pakistan’s Reko Diq copper mine, one of the world’s largest untapped deposits, which will be operated by Barrick Gold, according to sources cited by Reuters on Thursday.
Officials in Islamabad hope the project will act as a catalyst to attract further foreign investment into Pakistan’s mineral sector, particularly targeting rare earth deposits. The initiative has already drawn interest from the United States, with the Trump administration reportedly offered future concessions to American companies.
The financing package includes two loans totaling $300 million to Barrick Gold and a $110 million guarantee for the government of Pakistan. Reko Diq, projected to start producing copper and gold by 2028, is expected to generate approximately $70 billion in free cash flow over its operational lifespan.
The $6.6 billion project in Balochistan is jointly owned, with Barrick holding 50 percent and the federal and provincial governments sharing the remainder. ADB, the Petroleum Ministry, and Barrick Gold have not immediately responded to requests for comment.
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The project aims to raise over $2 billion, with a prior agreement securing $700 million in financing from the International Finance Corporation, the private investment arm of the World Bank. Developers are also in discussions with additional financiers, including the US Export-Import Bank, Export Development Canada, and Japan’s JBIC, with term sheets expected to be signed within the quarter, according to project director Tim Cribb.
After years of delays due to a legal dispute resolved in 2022, Reko Diq is expected to produce 200,000 metric tons of copper annually in its initial phase, increasing to 400,000 tons following expansion. Barrick has indicated that the mine could continue operations beyond its planned 37-year lifespan with technological upgrades and further exploration.