The financial closure of the $6.4 billion Reko Diq copper and gold mining project is expected next month, marking a major milestone for one of Pakistan’s largest mineral ventures. Final negotiations on loan terms are currently underway with key international financiers, including the US Exim Bank, UK Export Finance (UK Exim), the World Bank, and the Asian Development Bank (ADB).
The funding structure also includes significant contributions from the federal government and the government of Balochistan, with the federal share set at $3.4 billion and Balochistan’s share at $1.7 billion.
According to sources, the closing of the deal will unlock substantial foreign investment into Pakistan, as groundwork is already being laid for an initial $3 billion development phase. Once financial closure is finalized, production is expected to commence within three years, with first-year revenues projected at around $3 billion for both the federal and provincial governments.
In parallel, the federal cabinet has approved the sale of a 15% stake in the Reko Diq project to Saudi Arabia under an intergovernmental agreement. The $540 million investment will be executed in two stages: $330 million for a 10% share in the first phase, followed by $210 million for the remaining 5% stake in the second phase.
This strategic partnership is expected to strengthen economic ties between Pakistan and Saudi Arabia while bolstering investor confidence in the country’s mining sector.
