World Bank’s IFC to Provide $300 Million Financing for Reko Diq Project

The World Bank’s private investment wing, the International Finance Corporation (IFC), has agreed to provide $300 million in loan financing for the Reko Diq project. According to a Reuters report, the Project Director of Reko Diq announced on Tuesday that over $2 billion in financing will be secured from international lenders for the copper and gold project by Barrick Gold, with term sheets expected to be signed by the end of the third quarter.

Reko Diq’s mine is one of the world’s largest deposits of copper and gold, and this funding will assist in the development of the mine. It is expected that the project will generate $70 billion in free cash flow and $90 billion in operating cash flow.

Barrick Gold, along with the federal and Balochistan provincial governments, jointly owns the project. Financing discussions with multiple lenders are ongoing for the first phase, which is expected to begin production in 2028.

Tim Krib, the Project Director of Reko Diq, told Reuters in an interview at the 2025 Minerals Investment Forum that they expect $650 million in financing from the IFC and the International Development Association (IDA). He further added that negotiations are underway for between $500 million and $1 billion in financing from the U.S. Export-Import Bank. Additionally, discussions are in progress with development financial institutions such as the Asian Development Bank, Export Development Canada, and the Japan Bank for International Cooperation, for an additional $500 million in financing.

Krib indicated that they expect to finalize the term sheet by the end of the second quarter or early in the third quarter of this year. He also mentioned ongoing talks with IFC and other lenders for railway financing, with infrastructure costs estimated between $500 million to $800 million, of which the initial cost is approximately $350 million.

A recent feasibility study has upgraded the project’s scope, increasing the first phase’s annual production capacity from 40 million tons to 45 million tons, and the second phase’s capacity from 80 million tons to 90 million tons. As a result, the expected mine life has been reduced from 42 years to 37 years. However, the company believes that the mine’s reserves could last up to 80 years, as the mineral deposits may be greater than initially estimated.

The cost of the first phase of the Reko Diq project has also risen from $4 billion to $5.6 billion. Over the next decade, the World Bank intends to invest $2 billion annually in Pakistan’s infrastructure.

Tim Krib also stated that they expect lenders to secure off-take agreements with potential customers, including countries in Asia such as Japan and South Korea, as well as European nations like Sweden and Germany, who are looking to secure copper supplies for their industries.