Islamabad — The Asian Development Bank (ADB) will extend a $410 million financing package to support development of the Reko Diq copper and gold mine in Balochistan, one of the world’s largest untapped mineral deposits, sources confirmed on Thursday.
The package consists of two loans worth $300 million for Barrick Gold — the mine’s operator — and a $110 million financing guarantee for the government of Pakistan. The mine is jointly owned, with 50% held by Barrick and the remaining 50% by Pakistan’s federal and provincial governments.
The $6.6 billion project, long delayed due to legal disputes until a 2022 settlement, is expected to begin production in 2028. In its first phase, Reko Diq will produce around 200,000 metric tons of copper annually, with output set to double to 400,000 tons after expansion. Barrick has said the mine could operate well beyond its initial 37-year plan through further exploration.
Pakistan sees the project as a gateway to attracting more foreign investment in its mineral and rare earth sector. The Reko Diq venture has already drawn interest from international financiers. Alongside the ADB, the International Finance Corporation has committed $700 million, while talks are ongoing with the US Export-Import Bank, Export Development Canada, and Japan’s JBIC.
Over its lifespan, the mine is expected to generate about $70 billion in free cash flow, according to estimates shared with stakeholders.
