ADB to back Reko Diq mine with $410 million financing package

ISLAMABAD: The Asian Development Bank (ADB) has agreed to provide a $410 million financing package to support the development of Pakistan’s Reko Diq copper and gold mine, two sources familiar with the matter told Reuters on Thursday.

The project, one of the world’s largest untapped copper deposits, will be operated by Canada’s Barrick Gold.

Located in Balochistan, the $6.6 billion venture is seen by Islamabad as a flagship scheme that could attract much-needed foreign investment into the country’s mining and rare earth sector.

Officials hope the mine’s scale and potential will open the door for wider international participation, particularly from the United States, where interest in Pakistan’s mineral wealth has already been noted.

Details of the financing

The package includes two loans worth a combined $300 million to Barrick Gold and a $110 million financing guarantee for the government of Pakistan.

The mine, which is jointly owned by Barrick and Pakistan’s federal and provincial governments in equal share, is expected to begin production in 2028. Developers estimate it will generate around $70 billion in free cash flow over its life.

Work on Reko Diq had been stalled for years due to a long legal dispute that was finally resolved in 2022. Once production starts, the project will initially produce 200,000 metric tons of copper per year, with output set to double to 400,000 tons after an expansion. Barrick has said the mine could run beyond its current 37-year plan if further exploration proves successful.

International interest grows

Financing for the mine is gradually being pieced together. The project has already secured $700 million from the International Finance Corporation, the private sector arm of the World Bank, and is seeking additional support from the U.S. Export-Import Bank, Export Development Canada and Japan’s JBIC. Project director Tim Cribb said earlier this year that term sheets with potential financiers were expected to be signed before the end of this quarter.

If successful, the development of Reko Diq could mark a turning point for Pakistan’s mineral sector, signalling the country’s ability to host large-scale projects backed by global institutions.

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