ISLAMABAD: World Bank’s private investment arm, the International Finance Corporation (IFC), has committed a loan of $300 million to support the development of Pakistan’s Reko Diq copper and gold mining project—one of the world’s largest untapped mineral deposits located in Balochistan’s Chagai district.
The copper and gold mine’s development is anticipated to play a crucial role in revitalising Pakistan’s struggling economy.
According to Startup Pakistan, the project, jointly owned by Barrick Gold and Pakistan, has a mining life of 37 years and is expected to produce 13.1 million tons of copper and 17.9 million ounces of gold.
The company, however, believes that the life of the mine could extend to 80 years.
Barrick Gold holds a 50% stake in the project, three federal state-owned enterprises collectively own 25%, the Province of Balochistan has a 15% stake on a fully funded basis, and the remaining 10% is held by the Province of Balochistan on a free carried basis.
The Project Director of the Reko Diq copper and gold mine, Tim Cribb, told Reuters on Tuesday that Barrick Gold aims to secure over $2 billion in financing from international lenders, with term sheets expected to be signed by early in the third quarter.
In an interview with Reuters at the Pakistan Minerals Investment Forum 2025, Cribb shared that the project is targeting $650 million in funding from the International Finance Corporation (IFC) and the International Development Association (IDA).
He further added that the funding would support the development of the mine, and hoped to generate $70 billion in free cash flow and $90 billion in operating cash flow.
Financing for the first phase of the Reko Diq project, which is slated to begin production in 2028, is currently under discussion with multiple international lenders.
Project Director Tim Cribb also revealed that talks are ongoing with the U.S. Export-Import Bank for funding between $500 million and $1 billion.
Additionally, the project is seeking $500 million from development finance institutions, including the Asian Development Bank, Export Development Canada, and the Japan Bank for International Cooperation.
A recent feasibility study has upgraded the project’s scope, with phase one throughput increasing to 45 million tons per annum from 40 million, and phase two throughput rising to 90 million tons per annum from 80 million.
The World Bank has planned to invest $2 billion annually in Pakistan’s infrastructure over the next decade.
The mining project, which was delayed due to a long-running dispute that ended in 2022, is expected to start production by the end of 2028. Reko Diq is expected to produce 200,000 tons of copper per year in its first phase, with an estimated cost of $5.5 billion. The first phase is expected to be completed by 2029.
