The International Finance Corporation (IFC), the World Bank’s private sector investment arm, has pledged $300 million in debt financing for Pakistan’s Reko Diq copper-gold project—marking a strong signal of international investor confidence in the venture.
Situated in Balochistan’s Chagai District, Reko Diq is one of the world’s largest untapped copper-gold deposits. The project is jointly owned by Barrick Gold (50%) and the federal and provincial governments of Pakistan and Balochistan (50%).
According to Project Director Tim Cribb, the project is aiming to secure more than $2 billion in financing from global institutions, with term sheets expected by early Q3 this year. Speaking at the Pakistan Minerals Investment Forum 2025, Cribb shared that discussions are already underway for $650 million in support from the IFC and the International Development Association (IDA).
The funding will be used to develop the mine, which is projected to generate $70 billion in free cash flow and $90 billion in operating cash flow over its lifetime.
Phase one of the project, expected to begin production in 2028, is in talks with several major lenders, including the US Export-Import Bank for $500 million to $1 billion, and development finance institutions such as the Asian Development Bank, Export Development Canada, and Japan Bank for International Cooperation, which may contribute around $500 million.
Cribb also noted that discussions are ongoing for railway infrastructure financing, with estimated costs ranging from $500 million to $800 million, and an initial outlay of $350 million. These talks involve the IFC and other international financiers.
A recently updated feasibility study has expanded the project’s scope. Phase one’s annual throughput has increased from 40 million to 45 million tons, while phase two has been revised from 80 million to 90 million tons annually. Consequently, the mine’s lifespan has been shortened from 42 to 37 years due to the increased extraction rate, although undiscovered mineral reserves may extend operations up to 80 years.
The estimated cost for phase one has also risen from $4 billion to $5.6 billion. Once operational, Reko Diq is expected to produce 200,000 tons of copper annually during its initial phase, with full completion expected by 2029.
This move aligns with the World Bank’s broader strategy, which includes plans to invest $2 billion per year in Pakistan’s infrastructure over the next decade.
