Key Points:
- Reko Diq project secures $715 million in funding from OGDCL
- Project estimated to generate $90 billion over 37 years
- ML-3 railway link to connect mine to Port Qasim within three years
- Barrick Gold holds 50% stake; federal and Balochistan governments share remaining 50%
ISLAMABAD: The Reko Diq copper and gold mining project in Pakistan has entered a new development phase with a $715 million funding injection, Radio Pakistan reported on Friday.
Located in Balochistan, Pakistan’s largest province by area, Reko Diq is one of the world’s most significant untapped reserves of copper and gold. The project is projected to generate an estimated $90 billion in revenue over the next 37 years.
The funding boost comes through the Oil and Gas Development Company Limited (OGDCL), which has approved $715 million for the first phase of the project. Financing guarantees will also be provided jointly by OGDCL, Pakistan Petroleum Limited (PPL), and Government Holdings (Private) Limited through a corporate guarantee arrangement.
In addition to mining activities, infrastructure development is also underway. The Reko Diq Mining Company is set to provide a $350 million loan to finance the construction of a new railway line under the ML-3 project. This rail link will connect the Reko Diq site to Port Qasim and is expected to be completed within three years.
Once operational, the Reko Diq project is expected to produce 200,000 tonnes of copper per year in its first phase, with an estimated cost of $5.5 billion. According to Barrick Gold CEO Mark Bristow, this phase is scheduled for completion by 2029, with production anticipated to commence by the end of 2028.
A second development phase, estimated to cost $3.5 billion, is expected to double output.
Canada’s Barrick Gold Corporation owns a 50 percent stake in the project, while the remaining 50 percent is held jointly by the Government of Pakistan and the Government of Balochistan.
The project is set to generate thousands of employment opportunities and stimulate new business activity in the province, significantly contributing to Pakistan’s economy.
