The Asian Development Bank (ADB) is set to provide a $410 million financing package to support the development of Pakistan’s Reko Diq copper mine, according to two sources who spoke to Reuters. Operated by Barrick Gold, Reko Diq is considered one of the largest untapped copper and gold deposits globally, and Islamabad views the project as a catalyst to attract further foreign investment in Pakistan’s mineral sector, particularly in rare earth minerals.
The funding package includes two components: $300 million in loans directed to Barrick and a $110 million financing guarantee for the government of Pakistan.
The project, valued at $6.6 billion, is jointly owned, with Barrick holding a 50% stake and the remainder split between the federal and provincial governments of Balochistan. The mine is expected to begin production of copper and gold by 2028 and could generate approximately $70 billion in free cash flow over its operational lifespan.
Pakistan has already garnered international interest, including from the Trump administration, and has offered future concessions to encourage U.S. and other foreign companies to invest in its mining sector.
In addition to the ADB package, Reko Diq developers are pursuing additional financing to support the project, which already has a $700 million commitment from the International Finance Corporation, the World Bank’s private sector investment arm.
Talks are ongoing with other potential financiers such as the U.S. Export-Import Bank, Export Development Canada, and Japan’s JBIC, with expectations to finalize term sheets within the current quarter, according to project director Tim Cribb.
The mine’s first phase will produce 200,000 metric tonnes of copper annually, increasing to 400,000 tonnes after expansion. Barrick has indicated that the mine could operate beyond its planned 37-year lifespan through upgrades and further exploration, potentially extending its contribution to Pakistan’s economy.
Once operational, Reko Diq is expected to serve as a flagship project in Pakistan’s mining sector, demonstrating the country’s ability to attract large-scale foreign investment and highlighting its potential as a destination for resource development in the region.
The ADB, the Petroleum Ministry of Pakistan, and Barrick Gold have not yet issued formal statements regarding the financing package.
