The Ministry of Finance has indicated that the Asian Development Bank (ADB) is expected to approve a third-party guarantee arrangement for the Reko Diq mining project by February 2025.
This was revealed during a recent meeting with the Reko Diq Mining Company (RDMC), where project milestones and financial requirements were reviewed.
According to a news report, the RDMC’s country director provided an update on the project’s progress, highlighting key deadlines set for December 2024, including the need for government guarantees and equity funding from the Balochistan government.
A representative from the Finance Division stated that the third-party guarantee for Balochistan’s equity share is under consideration and is expected to be finalized by the ADB in February. The Ministry of Finance and the Petroleum Division are also working on credit enhancements with lending institutions to ensure the project’s financial close by June 2025.
In addition to financial considerations, the RDMC is collaborating with Pakistan Railways on a track access and operator agreement, expected to be drafted by October 2024. This agreement is essential for the project’s progress, as the mine will require export facilities through Pakistan International Bulk Terminal (PIBT) at Port Qasim.
The RDMC is also pushing for approvals of Environmental and Social Impact Assessments (ESIA) by December 2024, as well as the signing of a water pipeline corridor lease and water permits from the Balochistan government.
Further developments include the company’s plans to establish a captive power plant, with 180 MW required for the first phase of operations (2024-2028) and up to 400 MW for the second phase (2028-2038). The revised feasibility study, expected by December, will provide more clarity on these power needs.
As part of broader project facilitation, RDMC is seeking additional land leases at Port Qasim and approval for explosive permits necessary for drilling and mining operations. The company is also coordinating with various government ministries to ensure the security and movement of project staff.
The project is expected to reach a financial close by June 2025, with all stakeholders working to meet key deadlines. The completion of the feasibility study is set for March 2025.
