QUETTA: Reko Diq Mining Company is close to finalising financing for its copper and gold project in Balochistan. Commitments stand at around $6 billion—almost double the amount needed for phase one. The package includes $500 million in support from the United States, The Express Tribune reported.
Multilateral lenders have cleared more than $1 billion. The Asian Development Bank (ADB) will give $300 million in loans and a $110 million credit guarantee for Balochistan’s equity. The World Bank has approved its share. Additional funds are expected from the US Export-Import Bank, Japan’s EXIM, and other global agencies.
Phase one of the $6.7 billion project is now covered. The cost jumped 58% due to inflation and higher output plans. Pakistan’s state firms hold 25% ownership. The federal government will contribute $1.9 billion. Balochistan will add $1.1 billion. Barrick Gold will provide the remaining 50%.
ADB said the project will boost mineral supply chains, aid energy transition, and support digital infrastructure in the region. Officials expect thousands of jobs, stronger local economies, and new education and healthcare initiatives, especially for women and nearby communities.
Construction started this year. Work includes an open-pit mine and a processing plant. Production is due in late 2028. The project will run for at least 37 years under strict environmental, social, and governance standards. Annual output is set at 800,000 tonnes of copper concentrate. This will help meet global demand for renewable energy, electric vehicles, and digital technologies.
The feasibility study splits development into two phases. The first will process 45 million tonnes of ore each year. The second will double the capacity to 90 million tonnes by 2034. With copper at $4.03 per pound and gold at $2,045 per ounce, the project shows a 21.32% return and a payback period of six years and two months. Net cash flow over the mine’s life could reach $70 billion.
Also Read: Balochistan to receive 25% share in Reko Diq profits: CM Bugti
The project has attracted strong interest from the United States and China. It is also the first mining venture backed by ADB under its new Critical Minerals to Manufacturing Value Chains framework. The program helps Asia-Pacific countries benefit from rising demand for clean energy and digital transition materials.
