Reko Diq Mining Company is poised to finalise financing for its copper and gold project in Balochistan, with commitments totalling around $6 billion, nearly double the amount needed for phase one. The package includes at least $500 million in support from the United States, The Express Tribune reported.Â
Multilateral institutions have already approved over $1 billion, with the Asian Development Bank (ADB) providing $300 million in loans and a $110 million partial credit guarantee for the Balochistan government’s equity stake. The World Bank has also cleared its contribution, and additional funding is expected from the US Export-Import Bank, Japan’s EXIM, and other international agencies.
The financing will cover phase one of the $6.7 billion project, which had recently seen a 58% cost increase to account for inflation and expanded production plans. Under Pakistan’s 25% ownership through state firms, the federal government’s share rises to $1.9 billion while Balochistan’s contribution stands at $1.1 billion. Barrick Gold will provide the remaining 50% of funding.
ADB highlighted that the project will strengthen critical mineral supply chains, support energy transition, and contribute to regional digital infrastructure development. Officials expect the mine to generate thousands of jobs, stimulate local economies, and support education and healthcare initiatives, especially for women and nearby communities.
Construction began this year, including development of an open-pit mine and processing plant, with production expected to start in late 2028. The project will operate under strict environmental, social, and governance standards for at least 37 years. Initial output is projected at 800,000 tonnes of copper concentrate per year, addressing global supply shortfalls in a key material for renewable energy, electric vehicles, and digital technologies.
The feasibility study divides development into two phases: the first at 45 million tonnes of ore annually and the second doubling throughput to 90 million tonnes by 2034. With projected copper prices at $4.03 per pound and gold at $2,045 per ounce, the internal rate of return is estimated at 21.32%, with a payback period of six years and two months. Over the life of the mine, net cash flow could reach $70 billion.
The project has drawn interest from both the United States and China. It is also the first mining initiative supported by ADB under its new Critical Minerals to Manufacturing Value Chains framework, which aims to help Asia-Pacific countries capitalise on the growing demand for materials essential to clean energy and digital transformation.
