US Approves $1.25 Billion Financing for Reko Diq Project; EXIM Bank to Supply $2 Billion in Mining Equipment

Islamabad: The United States Export-Import (EXIM) Bank has approved **$1.25 billion** in new financing for Pakistan to support the development of the Reko Diq copper-gold mining project in Balochistan, according to a statement issued by the US Embassy in Islamabad.

In a video message, **US Chargé d’Affaires Natalie Baker** said that EXIM Bank will provide **nearly $2 billion worth of modern mining equipment and services** to Pakistan in the coming years to help make the Reko Diq project fully operational. She added that the initiative will create around **6,000 jobs in the United States** and **approximately 7,500 employment opportunities in Balochistan**.

Baker noted that Reko Diq will serve as a model for responsible mining, benefiting US exporters, Pakistani partners, and local communities alike. She further stated that the Trump administration considers such economic cooperation a key pillar of its diplomatic strategy and aims to expand bilateral partnerships in this sector.

Balochistan is regarded as Pakistan’s most resource-rich province. In the 1970s, the Geological Survey of Pakistan discovered vast copper and gold reserves in **Reko Diq** and **Saindak**. Located in Chagai district, Reko Diq is often referred to as a “sleeping giant” due to long delays caused by legal disputes and financial challenges.

The project was revived in late 2022 under a new agreement giving **25% ownership to the Balochistan government**, **25% to the federal government**, and **50% to Canada-based Barrick Gold**. Barrick Gold has pledged substantial investment and aims to begin production by **2028**.

At present, excavation and survey activities are underway in the red hills of Reko Diq, with authorities optimistic about the start of full-scale mining operations within the next four years. Additional investment partnerships are also being explored, including potential financing from Saudi company **Manara Minerals**.

Barrick Gold Corporation CEO **Mark Bristow** has said that once the second phase is complete, the project will produce **400,000 tons of copper annually**. The first phase alone is expected to cost around **$5.5 billion**, with production beginning in 2028 at a rate of **200,000 tons of copper concentrate** and **250,000 ounces of gold per year**.