Pakistan’s Reko Diq Mine Secures $410m Financing from ADB

The Asian Development Bank (ADB) has approved a $410 million financing package for Pakistan’s Reko Diq gold and copper project in Balochistan. The mine is considered one of the world’s largest untapped copper-gold deposits and will be developed by Barrick Gold Corporation.

ADB President Masato Kanda said the project will strengthen the global critical minerals supply chain. He added that Reko Diq will also support clean energy transition and digital innovation across the region.

“This support is a game-changer for Pakistan, creating quality jobs and building a stronger and more diversified economy,” Kanda said.

Financing Details

The package includes two loans worth $300 million for Barrick Gold and a $110 million partial credit guarantee for the Government of Balochistan’s equity share. The mine is part of a $6.6 billion project, owned 50% by Barrick and 50% by Pakistan’s federal and provincial governments.

Earlier, the project secured $700 million financing from the International Finance Corporation (IFC). Talks are also ongoing with the US Export-Import Bank, Export Development Canada, and Japan’s JBIC to raise the target of $2 billion in funding.

Economic and Global Impact

Reko Diq is expected to start production in 2028. Over its lifespan, it could generate $70 billion in free cash flow. In its first phase, the mine will produce 800,000 tonnes of copper concentrate per year, making it the fifth largest copper mine in the world.

Copper is a critical mineral for clean energy and digital technologies. It is essential for renewable energy, electric vehicles, batteries, smartphones, and data centers.

The Government of Pakistan hopes the success of Reko Diq will attract more foreign investors to the mineral sector, especially in rare earth deposits.

Reko Diq faced long delays due to a legal dispute, which was finally resolved in 2022. Barrick officials believe the mine could run beyond its planned 37-year life through further upgrades and exploration.