Islamabad: The Asian Development Bank (ADB) will extend a USD 410 million financing package to support the development of Pakistan’s Reko Diq gold-copper mine, one of the world’s largest untapped deposits, to be operated by Barrick Gold, two sources told Reuters on Thursday.
The financing includes two loans totaling USD 300 million to Barrick and a USD 110 million financing guarantee for the government of Pakistan. The official announcement is expected soon.
The Reko Diq project, valued at USD 6.6 billion, is located in Balochistan and is jointly owned by Barrick Gold (50%) and the federal and provincial governments (50%). Production is expected to begin in 2028, with output initially set at 200,000 metric tons of copper annually, rising to 400,000 tons after expansion. Over its lifespan, the mine is projected to generate around USD 70 billion in free cash flow.
Islamabad views the project as a catalyst to attract further foreign investment in its mineral sector, particularly in rare earth deposits. The government has already drawn interest from the United States and signaled potential concessions to American companies in the future.
The project’s developers have also secured USD 700 million in financing from the International Finance Corporation (IFC), the World Bank’s private investment arm, and are in discussions with other financiers including the US Export-Import Bank, Export Development Canada, and Japan’s JBIC. Term sheets with these institutions are expected to be signed this quarter.
Reko Diq, delayed for years due to a legal dispute settled in 2022, is expected to operate beyond its initial 37-year life span through upgrades and further exploration, according to Barrick.
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