Reko Diq: Machinery deployed, close ceremony in Jan

Islamabad: Pakistan and its partners are set to achieve financial close for the multibillion-dollar Reko Diq copper and gold mining project in January 2026, with USD 3.5 billion in funding expected to be secured, sources said.

Officials said the Pakistani side and its international partners have already deployed machinery at the project site and started construction work, even before the financial close is formally completed. The financial close ceremony is scheduled for January next year.

A legal adviser representing the project’s lenders recently briefed Federal Minister for Petroleum Ali Pervaiz Malik and the managing director of the Oil and Gas Development Company (OGDC) about the progress toward financial close. The briefing confirmed that financial arrangements have been completed and lenders are engaged in documentation.

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The update followed a meeting attended by the petroleum minister, OGDC leadership, and Munib Hussain, a London-based partner at international law firm Milbank representing the project financiers. The meeting reviewed developments in the energy and resource sector and discussed additional investment opportunities across Pakistan’s mining, and oil and gas sectors.

The Reko Diq project, located in Chagai district of Balochistan and revived by Canada’s Barrick Gold, is expected to begin copper and gold production by 2028. The project involves an initial investment of USD 5.5 billion and is projected to generate USD 2.8 billion in annual exports. According to Barrick Gold CEO Mark Bristow, the mine’s reserves could yield USD 74 billion in free cash flow over the next 37 years.

The project is also expected to create thousands of jobs, with a planned expansion set to increase copper production to 400,000 tonnes and gold output to 500,000 ounces per year, marking a significant milestone for Pakistan’s mineral sector.