Key points
- ADB and World Bank Group have already sanctioned just over $1 billion
- The ADB alone has approved a $300 million loan for the Reko Diq Mining Company
- Reko Diq is one of the world’s largest copper and gold deposits located in Pakistan’s Balochistan
ISLAMABAD: The Reko Diq Mining Company is on track to achieve financial close, backed by approximately $6 billion in funding pledges, nearly twice the amount required.
Among the key contributors, the United States has committed at least $500 million in support.
As reported by The Express Tribune, two major multilateral institutions, including the Asian Development Bank (ADB) and the World Bank Group, have already sanctioned just over $1 billion of the total.
Gold deposits
The ADB alone has approved a $300 million loan for the Reko Diq Mining Company, which owns 100 per cent of one of the world’s largest copper and gold deposits located in Balochistan, according to a statement released by the Manila-based lender on Friday.
The ADB stated that the Reko Diq project would play a vital role in meeting the increasing global demand for critical minerals, while also contributing to economic growth and poverty alleviation in Pakistan.
This $300 million financing is a key step toward financial closure, expected in the coming months, and is anticipated to encourage further participation from international private lenders, sources familiar with the matter noted.
Critical minerals supply chain
Additional agreements with lenders are in the pipeline to meet the $3.5 billion required for the first phase of the $6.7 billion project, The Express Tribune reported.
“Reko Diq will strengthen the critical minerals supply chain, support the clean energy transition, and promote digital advancement throughout the region and beyond,” said ADB President Masato Kanda after the board approved a $410 million package.
This package includes up to $300 million in loans for the Reko Diq Mining Company Private Limited (RDMC), along with a $110 million partial credit guarantee to secure the equity share of the Balochistan government, according to the ADB.
The project is set to become the largest foreign direct investment in Pakistan’s history.
Barrick Gold CEO Mark Bristow recently mentioned that a “G7 financing package” is being prepared for the venture, which is scheduled to start production in 2028.
