ISLAMABAD: The Asian Development Bank (ADB) will provide a $410 million financing package to help develop Pakistan’s Reko Diq copper-gold mine project, one of the world’s largest untapped deposits, which will be operated by Barrick Gold, according to an official statement.
“Reko Diq will help the critical minerals supply chain, while advancing the clean energy transition and driving digital innovation across the region and beyond,” said ADB President Masato Kanda.
“ADB’s support is also a game-changer for Pakistan, creating quality jobs and underpinning the nation’s transition toward a more resilient and diversified economy,” he added.
Islamabad hopes the project will serve as a springboard to draw more foreign interest to its mineral sector, particularly to exploit rare earth deposits. Pakistan has already attracted interest from the Trump administration and offered future concessions to US companies.
The loans and a financing guarantee will support the development of Reko Diq, which is expected to produce copper and gold from 2028 and generate about $70 billion in free cash flow over its lifespan.
The financing is composed of two loans totalling $300 million to Barrick and a $110 million partial credit guarantee to cover the equity component of the Government of Balochistan.
The $6.6 billion project in Balochistan is 50% owned by Barrick, with the other half held by the federal and provincial governments.
The project aims to raise upwards of $2 billion and has a previous agreement for $700 million in financing from the International Finance Corporation, the World Bank’s private investment arm.
The project’s developers are in talks with other prospective financiers, including the US Export-Import Bank, Export Development Canada and Japan’s JBIC and expect to sign term sheets this quarter, project director Tim Cribb told Reuters in April.
Reko Diq was delayed for years by a legal dispute that was settled in 2022. When fully complete it is expected to be the world’s fifth largest copper mine.
In the first phase, the mine will produce on average 800,000 tonnes of copper concentrate per annum and play a key role in addressing the projected global copper shortfall.
Copper, a critical mineral for energy transition and digital transformation, is essential to the global production of renewable energy technologies, electric vehicles, batteries, smartphones, and data centers.
Barrick says the mine could operate beyond its 37-year life through upgrades and further exploration.
