SEPTEMBERASIA BUSINESS OUTLOOK9NEWSROOMDONGFENG SOARS 69% ON VOYAH EV SPIN-OFF, HK DELISTINGReko Diq Mining Company (RDMC) is nearing finalizing financing agreements totaling close to USD 6 billion for its vast copper and gold project in Balochistan, nearly twice as much as it needs for its phase one development.The financing arrangement contains a minimum of USD 500 million in backing from the United States, accompanied by over USD 1 billion approvals by multilateral financiers.The Asian Development Bank (ADB) has provided USD 300 million in loans and a USD 110 million partial credit guarantee to finance Balochistan's equity contribution, and the World Bank has also approved its participation. Other contributions will come from the US Export-Import Bank, Japan's EXIM, and other agencies.Key Highlights:· Reko Diq nears USD 6B financing with ADB, World Bank, and US backing· Phase one cost rises to USD 6.7B, Barrick Gold to fund 50 percent share· Mine to produce 800,000 tonnes of copper concentrate yearly by 2028"The project not only secures critical mineral supply chains but also contributes to facilitating the global energy transition," an ADB spokesperson said, noting that it would deliver jobs, education, and healthcare benefits to the local people.Phase one of the USD 6.7 billion project whose cost just increased 58 percent because of inflation and increased production will be financed by the federal government and Balochistan for USD 1.9 billion and USD 1.1 billion respectively, while the other 50 percent is paid by Barrick Gold.Construction has commenced with the first production expected in late 2028. The mine is estimated to yield 800,000 tonnes of copper concentrate a year, running for at least 37 years under strict ESG standards."With increasing global copper and gold demand, Reko Diq is a once-in-a-generation opportunity for Pakistan's economy and for the future of clean energy," said a government spokesperson. Dongfeng Motor Group's Hong Kong-listed shares surged 69 percent to HK$10.1 (US$1.3) on August 25, 2025, after the company announced plans to delist from Hong Kong and restructure around its luxury EV brand, Voyah.Trading had resumed following a two-week suspension. Under the restructuring proposal, Hong Kong shareholders will receive HK$6.68 (US$0.9) in cash and 0.36 Voyah H shares per Dongfeng share, giving the deal a theoretical value of HK$10.9 (US$1.4) per share. The move highlights Dongfeng's strategic pivot amid intensifying competition in China's electric vehicle sector. The company's decision mirrors a broader trend of privatization and restructuring in Asia, where firms delist to regain management flexibility and reduce public company compliance costs.Key Highlights· Dongfeng shares surged 69 percent on plans to delist and list Voyah EV· Restructuring gives HK shareholders cash + Voyah H shares· China's EV boom drives automakers to spin off EV divisionsA parallel can be drawn with Malaysia's OldTown Coffee privatization by JDE Asia, which pursued a strategic transformation despite declining financials.China's EV market provides strong context for Dongfeng's decision: the country now accounts for over half of global EV sales, with global volumes reaching 17.8 million units in 2024 and projected to climb to 21.3 million units in 2025. As electrification accelerates, automakers face pressure to separate conventional and EV businesses to attract specialized investors and compete with pure-play EV firms like Tesla, BYD, and Nio.Dongfeng's restructuring reflects a growing industry-wide transformation, where traditional automakers are forced to reallocate resources, spin off EV divisions, and adapt to the disruptive forces of electrification that could render many traditional components obsolete. REKO DIQ SECURES USD 6B FINANCING BOOST FOR BALOCHISTAN PROJECT
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