Islamabad: Pakistan’s largest mining project, the Reko Diq copper-gold venture, has taken a major step toward full financing after the US Export–Import (EXIM) Bank approved a USD 1.25 billion facility. Canada’s Export Development Canada (EDC) is co-financing alongside EXIM, bringing the combined US–Canada contribution to USD 1.4 billion and covering half of the USD 3.5 billion debt requirement for the project.
Both agencies will also supply equipment and services for mine construction, officials said. With this development, authorities now expect the full financial closure of the USD 7.7 billion venture within the first two weeks of December, ahead of the Reko Diq Mining Company (RDMC) board meeting scheduled for December 9.
The project’s capital expenditure was initially estimated at USD 6.9 billion, but lenders requested a revised figure of USD 7.7 billion to account for contingencies and risk coverage. Officials involved in ongoing negotiations noted that USD 3.5 billion has already been secured from multilateral institutions and export credit agencies.
Other confirmed commitments include USD 700 million from the International Finance Corporation (IFC) and USD 300 million from the Asian Development Bank (ADB). Japan Bank for International Cooperation (JBIC) is preparing close to USD 300 million in import financing, while three European institutions—Germany’s Euler Hermes and KfW, and Sweden’s EKN—will jointly provide USD 900 million tied to off-take agreements for copper and gold. Collectively, these contributions account for roughly 30 percent of the financing package.
Officials said discussions on interest rates are ongoing, with terms varying across lender categories. Any disputes under the agreements are to be resolved through the London Court of International Arbitration under English law.
The Reko Diq project follows a 50:50 debt-to-equity structure. RDMC, the special-purpose company managing the venture, is owned by Barrick Gold Corporation (50%), the Government of Pakistan (25%) through OGDCL, PPL, and GHPL, and the Government of Balochistan (25%), which includes a 10 percent free-carried interest and a 15 percent fully funded stake.
In a related infrastructure commitment, RDMC has pledged USD 390 million in bridge financing to upgrade Pakistan Railways’ Main Line-2 and Main Line-3. This is intended to ensure efficient transport of mined materials to Port Qasim ahead of production, which is expected to begin in 2028.
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