According to an official statement, the Asian Development Bank (ADB) will provide a $410 million financing package to support the development of Pakistan’s Reko Diq copper-gold mine project. Operated by Barrick Gold, Reko Diq is one of the world’s largest untapped mineral deposits.
“Reko Diq will help the critical minerals supply chain, while advancing the clean energy transition and driving digital innovation across the region and beyond,” said ADB President Masato Kanda. He added that the ADB’s support is “a game-changer for Pakistan, creating quality jobs and underpinning the nation’s transition toward a more resilient and diversified economy.” Islamabad hopes the project will attract more foreign investment to its mineral sector, particularly to exploit rare earth deposits. The country has already garnered interest from the Trump administration and has offered future concessions to US companies.
The financing, which includes loans and a financial guarantee, will support the development of Reko Diq, a project expected to begin producing copper and gold in 2028 and generate an estimated $70 billion in free cash flow over its operational life. The package consists of two loans totaling $300 million to Barrick and a $110 million partial credit guarantee to cover the equity share of the Government of Balochistan.
The $6.6 billion project in Balochistan is 50% owned by Barrick, with the remaining half held by Pakistan’s federal and provincial governments. The project aims to raise over $2 billion in total financing and already has a previous agreement for $700 million from the International Finance Corporation, the private investment arm of the World Bank.
Project director Tim Cribb told Reuters in April that the developers are in discussions with other potential financiers, including the US Export-Import Bank, Export Development Canada, and Japan’s JBIC, with term sheets expected to be signed this quarter. The Reko Diq project faced years of delays due to a legal dispute that was resolved in 2022. Once fully operational, it is expected to be the world’s fifth-largest copper mine.
In its initial phase, the mine is projected to produce an average of 800,000 tonnes of copper concentrate per year, which will be vital in addressing the forecasted global copper shortfall. Copper is a critical mineral for the clean energy transition and digital transformation, essential for the production of renewable energy technologies, electric vehicles, batteries, smartphones, and data centers. Barrick believes that through upgrades and further exploration, the mine could operate beyond its projected 37-year lifespan.
