ADB backs Reko Diq with a $410 million financing package aimed at accelerating the development of Pakistan’s massive ADB Backs Reko Diq copper-gold mine, positioning it to attract global investment and drive long-term economic returns.
slamabad – The Asian Development Bank (ADB) is set to inject $410 million in support of Pakistan’s ambitious Reko Diq copper-gold project in Balochistan, according to two insiders briefed by Reuters Reuters.
This financing includes $300 million in loans extended directly to Barrick Gold—the operator of the project—and a $110 million financing guarantee for the Government of Pakistan Reuters. The ADB Backs Reko Diq venture, estimated at $6.6 billion in total, is jointly owned—50% by Barrick Gold and the remaining by Pakistan’s federal and provincial entities Reuters.
Officials envision the Reko Diq project will signal confidence to international investors in Pakistan’s mineral potential—especially in rare earths—and have already offered concessions to U.S. firms ReutersArab News.
Production is slated to commence in 2028, targeting 200,000 metric tons of copper annually in phase one, with plans to double output to 400,000 tons during later expansions. Over its projected 37-year operation, Reko Diq is forecasted to generate around $70 billion in free cash flow ReutersArab News.
This ADB Backs Reko Diq commitment builds on a previously secured $700 million financing from the International Finance Corporation (IFC), with additional funding expected from institutions like the U.S. Export-Import Bank, Export Development Canada, and Japan’s JBIC Reuters+1Canadian Mining Journal.
After lingering in legal limbo for years, thanks to a settlement in 2022, the Reko Diq project has officially entered its development phase, embodying Pakistan’s strategy to revitalize its mineral sector and draw global capital Reuters+1.
- Package includes $300 million in loans to Barrick Gold
- Loans, financing guarantees to spur mine development.
- $6.6bn project in Balochistan is 50% owned by Barrick.
