ADB Approves \$410 Million Financing Package for Pakistan’s Reko Diq Copper-Gold Project

Islamabad: The Asian Development Bank (ADB) has approved a \$410 million financing package for Pakistan’s Reko Diq project, one of the world’s largest undeveloped copper and gold deposits.

According to ADB’s official statement, the package includes two loans worth \$300 million and a \$110 million political risk guarantee for the Government of Pakistan. The Reko Diq project is being developed and operated by Barrick Gold Corporation.

The project is expected to start production of copper and gold by 2028, generating an estimated \$70 billion in free cash flow over its lifetime. The total cost of the project is \$6.6 billion, with Barrick Gold holding a 50% stake, while the remaining shares are held by the federal and Balochistan provincial governments.

Pakistan sees the Reko Diq project as a milestone that could attract further foreign investment in the mining sector. Interest has already been shown by companies from the United States and other countries.

Reko Diq had previously been entangled in legal disputes for several years, which were resolved in 2022, paving the way for project development.

In its first phase, the project aims to produce 200,000 metric tons of copper annually, which may be expanded to 400,000 tons. According to Barrick Gold, the project’s lifespan could exceed 37 years, depending on future upgrades and new discoveries.

The project has already secured \$700 million in funding from the International Finance Corporation (IFC). Discussions for further financing are ongoing with the U.S. Export-Import Bank, Canada’s Export Development Corporation, and Japan’s JBIC.