World Bank investment arm commits $300 million loan to Pakistan’s Reko Diq mining project

The World Bank’s private investment arm, International Finance Corporation, will provide $300 million in debt financing for Pakistan’s Reko Diq copper-gold mining project, Reuters reported citing an IFC disclosure. 

The Reko Diq project, which was restructured in 2022, is a 50-50 partnership between the government of Pakistan, the Balochistan government, and Barrick Gold. 

The mine, considered one of the largest untapped copper and gold reserves in the world, is expected to have a substantial economic impact on Pakistan.

The project’s first production is expected to commence in 2028, with an annual target of 240,000 tons of copper and 300,000 ounces of gold. Phase two aims to increase production to 400,000 tons of copper and 500,000 ounces of gold per year.

On the sidelines of the two-day Pakistan Minerals Investment Forum in Islamabad on Tuesday, Barrick Gold CEO Mark Bristow said that the Reko Diq project will become a pivotal asset for Pakistan, marking the country’s emergence as a global player in the mining sector. 

Barrick Gold Corp. has provisionally approved plans to develop a vast copper-and-gold project in Pakistan and expects to sign a $3 billion funding package for the mine in the third quarter.

Barrick’s CEO said in a recent interview with Bloomberg that financing for the Reko Diq project is led by the World Bank’s International Finance Corp., with participation from state funding agencies in the US, Germany, Japan, and elsewhere.