ISLAMABAD: Significant progress has been reported on the multibillion-dollar Reko Diq copper and gold mining project, which carries an estimated total cost of more than 10 billion US dollars.
In Balochistan news updates, A key agreement for laying a 1,350-kilometre railway track is scheduled to be signed on October 2.
In addition, a bridge-financing deal worth 390 million dollars will be finalized with the Reko Diq Mining Company to help fund the project’s early phase.
According to officials, the first phase of Reko Diq will require about 7.72 billion dollars, while the second phase will add another 3.3 billion dollars.
The mine, considered one of the five largest copper and gold deposits in the world, is expected to be a game-changer for Pakistan’s economy.
To transport minerals from Balochistan to Karachi for export, a 1,350-kilometre railway line will be built.
Balochistan News Updates
Senior officials from the Ministry of Railways and other relevant departments will travel to the United Kingdom to sign the rail agreement, after the Economic Coordination Committee (ECC) approved the 390-million-dollar bridge financing.
The financing arrangement will allow the Reko Diq Mining Company to provide the loan needed for construction of the Balochistan-to-Karachi rail link.
Investors involved in the project will also be granted access to the rail network for mineral transport.
New legislation will place oversight with the Railway Board instead of the federal government, enabling the board to approve fees, charges, and revenue-sharing mechanisms.
Pakistan plans to raise about 3.5 billion dollars in loans for the first phase of the project, and talks are underway with international lenders, including the Asian Development Bank, to secure funding.
Earlier estimates placed the initial cost of Phase One at 4.3 billion dollars, later revised to 6.8 billion dollars.
Production from the Reko Diq mine is targeted to begin in 2028.
During the first phase, the mine is expected to yield around 200,000 tons of copper annually.
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Phase One is projected to be completed by 2029, while Phase Two is scheduled to start in 2034 with an additional investment of 3.3 billion dollars.
