Pakistan’s giant Reko Diq copper-gold project has secured a $410 million financing package from the Asian Development Bank (ADB), a major boost for a venture expected to reshape the country’s mineral sector, two sources confirmed to Reuters on Thursday.
The $6.6 billion mine in Balochistan is jointly owned by Barrick Gold, which holds a 50 percent stake, with the federal and provincial governments retaining the remaining half. Development of the deposit, one of the largest untapped copper reserves in the world, has been delayed for years but resumed after a 2022 legal settlement.
Under the new arrangement, ADB will provide two loans amounting to $300 million to Barrick, alongside a $110 million financing guarantee for the government of Pakistan, the sources said ahead of the official announcement. The project is targeting upwards of $2 billion in total financing, building on a $700 million facility previously agreed with the International Finance Corporation, the World Bank’s private sector arm.
Project director Tim Cribb told Reuters in April that discussions were ongoing with the U.S. Export-Import Bank, Export Development Canada, and Japan’s JBIC, with term sheets expected to be signed this quarter.
Islamabad hopes Reko Diq’s revival will help attract further foreign participation in Pakistan’s mineral exploration, particularly in rare earths. Officials have also pitched future concessions to U.S. companies, which the Trump administration had previously shown interest in.
Production at the mine is expected to begin in 2028, with initial output projected at 200,000 metric tons of copper annually in the first phase, doubling to 400,000 tons following expansion. Over its 37-year life, the project is forecast to generate around $70 billion in free cash flow, with Barrick suggesting the mine could operate beyond that horizon through upgrades and new exploration.
ADB, Barrick, and Pakistan’s petroleum ministry did not immediately comment on the development.
Earlier this year, Barrick also signed a $440 million agreement with Komatsu to supply equipment for Reko Diq, while local partners OGDCL and PPL raised their commitments to $715 million each.
