The financial close of the Reko Diq Mining Project is expected by June 2025, contingent upon milestones such as the Asian Development Bank’s (ADB) approval of a third-party guarantee, legal amendments, and a completed feasibility study by December 2024.Â
According to a news report, these developments were discussed at a progress review meeting chaired by the Team Lead of the Project Support Team (PST) at the Prime Minister’s Office.
Reko Diq Mine ownership is shared among Barrick Gold (50%), three federal state-owned enterprises (25%), and the Balochistan Government (25%), with a portion funded and another carried on a free basis. Key milestones include the completion of the feasibility study, resolution of regulatory issues, and securing financing arrangements.
The Directorate General of Customs Valuation, Karachi, has nearly completed credit enhancements for state-owned enterprises involved in the project. ADB is expected to finalize the third-party guarantee arrangement by May 2025, but the timeline has been extended multiple times since December 2022.
On tax and export processing regimes, the Federal Board of Revenue (FBR) is addressing issues related to customs rules, while Pakistan Railways and Reko Diq Mining Company (RDMC) are finalizing a Track Access Agreement. The two entities have conducted 20 meetings, with the first draft prepared and awaiting simulation data for commercial details.
The project’s security framework is in place following agreements between federal, provincial, and RDMC stakeholders. However, financial constraints at the Frontier Corps (FC) due to pending payments from the Ministry of Interior remain unresolved.
The Petroleum Division is revising mineral laws, with input from provincial governments, to ensure compliance with international standards. RDMC has highlighted the need for expedited amendments to the Mines Act 2023 to meet lender requirements.
Water extraction remains a pending issue, with land allocated for boreholes and pipelines but awaiting approval from the District Water Board in Chaghai. Amendments to Mining Lease 20 for additional land required for the pipeline are also pending provincial cabinet approval.
The Feasibility Study is on track for completion by December 2024, with RDMC preparing power requirement data for National Transmission & Dispatch Company (NTDC) and QESCO to finalize power supply options. The Environmental Impact Assessment and Social Assessment reports will be submitted to the Balochistan Environmental Protection Agency (BEPA) shortly.
The Reko Diq Mining Project, critical for economic growth, is progressing with close coordination between federal and provincial governments and private stakeholders.
