ISLAMABAD: Pakistan’s top economic body has approved agreements related to the financing of the massive Reko Diq copper and gold project in Balochistan, clearing the way for development of one of the world’s largest untapped mineral reserves.
The Economic Coordination Committee (ECC) also gave the go-ahead for a $390 million bridge financing deal to build a 1,350-kilometre railway line that will support large-scale mineral exports from the province.
A bridge financing agreement worth $390 million has also been approved for the construction of a 1,350-kilometre railway line to facilitate the export of minerals from Balochistan’s mines.
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.
Chairing the top economic body’s meeting on Thursday, Finance Minister Muhammad Aurangzeb emphasised that the Reko Diq project—rich in gold and copper reserves—will play a key role in creating jobs, developing infrastructure, and driving long-term economic growth in the region.
The committee reviewed a summary from the Petroleum Division, which sought approval for final agreements and financial commitments related to the Reko Diq project. According to the Ministry of Finance, these approvals have now cleared the path for the project’s implementation to begin.
The ECC approved the proposed terms and directed that, should there be any major change in the final form of the agreements after legal and financial review, the matter be brought before the ECC again.
The committee also reviewed a summary from the Ministry of Railways, which sought approval for a Rail Development Agreement with the Reko Diq Mining Company and the associated $390 million bridge financing agreement. The railway will facilitate the large-scale transport of export goods from Balochistan’s mines.
The ECC approved the proposal and directed the Ministry of Railways to share copies of both agreements with the Ministry of Finance for further analysis. Both ministries were also asked to present a report to the ECC by March next year regarding the implementation of the project.
Finance Minister Muhammad Aurangzeb stated that the approvals demonstrate the government’s strong commitment to moving forward with this landmark project, which has the potential to transform Balochistan’s economic landscape and deliver wide-ranging benefits for the people of Pakistan.
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.
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.
