ISLAMABAD: Pakistan’s flagship Reko Diq copper and gold mining venture is set to achieve long-awaited financial closure by late September or early October, according to senior officials, marking a milestone for the country’s mining and investment sector.
Situated in Balochistan’s Chagai district, the project is projected to generate nearly $74 billion in free cash flows over a 37-year span, positioning it as a cornerstone of Pakistan’s future economic framework.
At recent Annual General Meetings, the boards of state-owned OGDCL, PPL, and GHPL formally approved an additional $715 million in costs, bringing the total to $7.48 billion. The revised figure accounts for inflation, commodity price volatility, and lender-imposed contingencies. Officials, however, stressed that strict cost discipline could still keep execution within the original $6.765 billion estimate.
Construction is slated to begin in December 2025, with commercial production targeted for 2028. The project’s financing plan rests on a 50:50 equity-to-debt ratio, providing room for both domestic and international investment without excessive borrowing. Oversight lies with the Reko Diq Mining Company (RDMC), a special-purpose entity jointly owned by Barrick Gold and the governments of Pakistan and Balochistan.
Barrick Gold, the lead operator, controls 50 percent of the venture. The remaining half is split equally, with the Government of Pakistan holding its share through OGDCL, PPL, and GHPL, while the Government of Balochistan retains 25 percent. That provincial share includes a 10 percent free-carried interest and 15 percent fully funded equity underwritten by the federal government, ensuring Balochistan’s participation without financial exposure.
The project has already drawn major international financiers. The International Finance Corporation (IFC) has committed $700 million, including a $400 million subordinated loan secured on the balance sheets of Pakistan’s SOEs—structured without sovereign guarantees, a first for projects of this scale. The Asian Development Bank (ADB) has followed with a $300 million loan, its first mining-sector financing in four decades, along with a $110 million credit guarantee to strengthen Balochistan’s stake.
Talks are also advancing with US EXIM Bank, Export Development Canada, and Japan Bank for International Cooperation (JBIC), with further commitments expected soon.
Beyond mining, RDMC has pledged $350–400 million in bridge financing for Pakistan Railways’ ML-2 and ML-3 upgrades, creating a direct link from the mine to Port Qasim for mineral exports. The upgrades are expected to be ready by the time production begins in 2028.