ISLAMABAD: The United States Export-Import Bank has authorised up to $1.3billion in financing for the Reko Diq copper and gold mining project inBalochistan province, marking a pivotal development for Pakistan’s mineralsector. This allocation forms part of the broader Project Vault initiative,a $10 billion programme announced by President Trump in early February 2026to establish a strategic reserve of critical minerals and protect domesticindustries from supply disruptions. The decision highlights Reko Diq’sstrategic 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 reconstitutedpartnership involving Barrick Gold Corporation of Canada, which holds a 50per cent stake, alongside Pakistani federal and Balochistan provincialentities sharing the remaining ownership. Total estimated investment forthe venture stands at approximately $7 billion, though earlier projectionscited $3.2 billion for initial phases. Construction activities havecommenced at the site, with commercial production targeted for 2028,promising annual output of around 200,000 metric tons of copper in thefirst phase, alongside substantial gold volumes over the mine’s projectedmulti-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 gradesof both metals. The project’s scale positions it to generate substantialeconomic benefits for Pakistan, including foreign exchange earnings throughexports, job creation peaking at 7,500 during construction and sustaining4,000 long-term positions, and infrastructure improvements in anunderdeveloped region. Revenue sharing arrangements ensure benefits flow tofederal and provincial governments, with potential free cash flowsexceeding $70 billion over the mine’s life according to operator estimates.
The US financing aligns with the Export-Import Bank’s expanded mandate tosupport critical minerals extraction worldwide, as evidenced by recentauthorisations for domestic and international projects. Alongside the RekoDiq commitment, approvals include $27.4 million for advanced metal powderproduction in Pennsylvania, $23.5 million for critical metals processing inTennessee, $15.9 million for zinc mining in New York, and $11.1 million fortitanium processing in Virginia. Over the past year, the bank has issuednearly $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 criticalminerals, essential for electric vehicles, batteries, artificialintelligence technologies, and defence applications. The 2026 CriticalMinerals Ministerial hosted by the United States, attended byrepresentatives from numerous countries including Pakistan, facilitated newbilateral frameworks and memorandums to address pricing, supply gaps, andfinancing access. Reko Diq’s inclusion as the sole non-domestic projecthighlighted under Project Vault illustrates its perceived importance inWashington’s strategy to reshape global mineral markets and enhance supplychain resilience.
Despite the positive momentum, the project faces ongoing challenges,including security concerns in Balochistan province that prompted BarrickGold to initiate a comprehensive review of security arrangements,development timelines, and capital budgets in early 2026. Operatorstatements indicate the assessment is underway, with updates expected uponcompletion. Environmental and social impact assessments have receivedgovernmental approval, emphasising commitments to sustainable practices,though stakeholder concerns persist regarding local community impacts andresource management.
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The US involvement is expected to accelerate progress toward production,bolster investor confidence, and contribute to Pakistan’s ambitions formineral-led economic growth. As one of the most significant foreignfinancing commitments for the project, it reinforces Reko Diq’s role ininternational critical minerals diplomacy while offering Pakistan a pathwayto harness its untapped resource potential responsibly.
Source:https://www.state.gov/releases/office-of-the-spotsperson/2026/02/2026-critical-minerals-ministerial
Export-Import Bank
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