Pakistan has secured a $410 million financing package from the Asian Development Bank (ADB) to support the development of the Reko Diq copper-gold mine in Balochistan, one of the world’s largest untapped deposits. The funding includes $300 million in loans to Barrick Gold and a $110 million partial credit guarantee to cover the equity component of the Government of Balochistan, aiming to accelerate mine development and ensure financial stability for the project.
The $6.6 billion Reko Diq project is a joint venture where Barrick Gold holds a 50% stake, while the federal and provincial governments collectively own the remaining half. Islamabad views this project as a turning point for its mineral sector, expecting it to draw greater foreign investment, particularly from global players seeking rare earth and strategic minerals. The government has already offered potential concessions to US companies under the Trump administration to encourage deeper involvement in Pakistan’s mining industry.
In its first phase, Reko Diq is expected to produce around 800,000 tonnes of copper concentrate annually, with production scheduled to begin in 2028. The mine is projected to generate nearly $70 billion in free cash flow over its lifespan, helping Pakistan strengthen its economy and meet rising global demand for copper, which is critical for renewable energy, electric vehicles, and digital technologies. Additionally, Barrick has indicated that through upgrades and further exploration, the mine could continue operations beyond its initial 37-year plan.
The ADB described the project as a “game-changer” for Pakistan, emphasizing its potential to create thousands of quality jobs and support the nation’s transition toward a more resilient and diversified economy. ADB President Masato Kanda highlighted that Reko Diq will also enhance the global supply chain of critical minerals, contributing to the clean energy transition and digital innovation across multiple regions. This international support underlines the strategic importance of the project for both Pakistan and the broader global economy.
Furthermore, the project developers have already raised $700 million in financing from the International Finance Corporation, the World Bank’s private investment arm, and continue to engage with other major financiers. Ongoing discussions involve institutions like the US Export-Import Bank, Export Development Canada, and Japan’s JBIC, with term sheet agreements expected this quarter. These developments mark a significant shift for Pakistan, which resolved years of legal disputes over Reko Diq in 2022, clearing the way for it to become one of the world’s top five copper mines.