Reko Diq Secures USD 6B Financing Boost for Balochistan Project

 

Reko 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.

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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.