KEP POINTS
- ADB approved a $410m package for Reko Diq copper and gold mine.
- Financing package includes $300m in loans to RDMC and a $110m credit guarantee for Balochistan’s equity share.
- Reko Diq is projected to become the world’s fifth-largest copper mine, starting production in 2028.
- The mine will produce 800,000 tonnes of copper concentrate annually for at least 37 years.
- Project seen as Pakistan’s largest ever FDI, expected to generate $70bn free cash flow.
- Expected to create jobs, support social programmes, and boost clean energy and digital supply chains.
ISLAMABAD: The Asian Development Bank (ADB) has approved a $410 million financing package to support the development of Pakistan’s Reko Diq copper and gold mine, one of the world’s largest untapped deposits, ADB said in a statement on Friday.
The hugely lucrative cooper and gold project in Pakistan’s Balochistan province seeks to develop one of the world’s largest untapped copper and gold deposits, with production expected to start in 2028.
When completed, Reko Diq is projected to be the world’s fifth-largest copper mine, a metal critical for wiring, motors and renewable energy technology.
The financing package includes up to $300 million in senior loans to the Reko Diq Mining Company Private Limited (RDMC) and a $110 million partial credit guarantee to cover the equity contribution of the Government of Balochistan.
RDMC is a joint venture in which Barrick Gold Corporation holds 50 percent, the Balochistan provincial government 25 percent, and three federal state-owned enterprises the remaining 25 percent.
ADB President Masato Kanda described the package as “a game-changer for Pakistan”, adding that it would underpin the country’s transition to a more resilient and diversified economy.
“Reko Diq will help the critical minerals supply chain, while advancing the clean energy transition and driving digital innovation across the region and beyond,” Kanda said in a statement.
Located in the Chagai district of Balochistan, Pakistan’s least developed province, the mine is expected to begin producing copper concentrate in 2028 and operate for at least 37 years.
Once fully operational, Reko Diq is projected to become the world’s fifth-largest copper mine, producing on average 800,000 tonnes of copper concentrate annually.
Copper is regarded as a critical mineral for the global energy transition and digital transformation, with applications ranging from renewable energy technologies and electric vehicles to smartphones and data centres.
The copper and gold mine is expected to play a key role in addressing the projected global copper shortfall.
The ADB said the project would represent the largest single foreign direct investment in Pakistan’s history.
The project will also generate significant socio-economic benefits, creating thousands of jobs, stimulating regional growth, and supporting healthcare and education programmes, including targeted initiatives for women.
According to ADB, Reko Diq is the first mining project it has backed under its new Critical Minerals-to-Manufacturing Value Chains approach, which aims to help Asia and the Pacific capitalise on the rising demand for minerals essential to clean energy and digital technologies.
The project is being developed with strong environmental, social, and governance safeguards.
Pakistan has promoted Reko Diq as a cornerstone of its economic revival strategy and hopes the mine will draw wider foreign investment into its mineral sector, including rare earth deposits.
Over its lifespan, the project is expected to generate around $70 billion in free cash flow, according to government estimates.
