Reko Diq Mining Company (RDMC) is progressing with the raising of up to $3 billion in limited recourse project financing to support the development of Phase 1 of the Reko Diq project.
The financing involves a group of lenders, including the International Finance Corporation (IFC), International Development Association (IDA), Asian Development Bank (ADB), US International Development Finance Corporation (DFC), Export-Import Bank of the United States (US EXIM), Export Development Canada (EDC), Euler Hermes AG, KfW IPEX-Bank GmbH of Germany, Exportkreditnämnden (EKN) of Sweden, and Finnvera Oyi (Finnvera) of Finland, alongside a covered commercial bank tranche.
The Reko Diq Mining Company remains on track to sign project finance documents and expects the project loan to be available for the initial drawdown in the second half of 2025, according to a statement issued by the company.
The statement also mentioned that RDMC welcomed the approval on June 12, 2025, by the IFC and IDA of a direct loan of up to US$700 million for RDMC at a joint board meeting.
The target for first production from the project remains set for the end of 2028.
Last week, the World Bank Group had approved a $700 million loan for the Reko Diq mining project, despite strong opposition from India, which attempted to block the investment required to meet the project’s overall $3 billion financing needs.
According to a report by Reuters, the International Finance Corporation will provide a $400 million subordinated loan for the Reko Diq copper-gold mine. Of the total, the remaining $300 million will be extended by the International Development Association (IDA), which is also a part of the World Bank Group.
The estimated cost of the mine is $6.6 billion, to be funded through a mix of debt and equity from a consortium of lenders.
“The estimated total Project cost is $6.6bn, and it will be financed using a combination of debt and equity,” the IFC disclosure said, adding that other parallel lenders will provide the remaining debt financing.
This type of loan, known as subordinated debt, is typically repaid after other senior loans and helps absorb more risk, making it easier for other lenders to invest.
Other financiers, including the US EXIM Bank, Asian Development Bank, Export Development Canada, and Japan’s JBIC, are also expected to join the financing package, project director Tim Cribb told Reuters in April. Term sheets are expected to close by early in the third quarter.
IFC chief Makhtar Diop said earlier this year that the institution was “doubling down” on Pakistan, with a focus on infrastructure, energy and natural resources.
Reko Diq, located in Balochistan, is one of the world’s largest undeveloped copper-gold deposits. It is being developed by Barrick Gold, which holds 50%, with the remainder split between Pakistan’s federal and provincial governments.
Production is expected to begin in 2028. Barrick has projected the mine will generate up to $74 billion in free cash flow over its estimated 37-year life.
