ISLAMABAD: The International Finance Corporation and the World Bank have approved a $700 million concessional loan for the Reko Diq project. This major mining project is located in Balochistan, Pakistan’s mineral-rich province. The loan approval is a significant win for Pakistan.
This approval is expected to trigger $2.5 billion in private sector investment. The Reko Diq project is jointly owned by Barrick Gold, the federal government, and the Balochistan government.
The project is set to begin production in 2028. Financing talks for phase one are ongoing with multiple lenders.
A recent feasibility study expanded the project’s scope. Phase one throughput has increased from 40 to 45 million tonnes per year. Phase two will now handle 90 million tonnes, up from 80 million tonnes.
Due to the increased throughput, the mine’s lifespan has been reduced from 42 years to 37. However, Barrick believes undiscovered minerals could extend the life up to 80 years.
The estimated cost for phase one has also risen—from $4 billion to $5.6 billion.
Also Read: Balochistan to get thousands new gas connections
The World Bank plans to invest $2 billion annually in Pakistan’s infrastructure over the next 10 years.
