ISLAMABAD: In a major breakthrough for Pakistan’s mining industry, international donors have pledged over $5 billion in financing for the Reko Diq copper and gold mining project — surpassing the project’s funding requirement of $3 billion.
According to official sources, the enthusiastic response comes from leading global institutions including the Asian Development Bank (ADB), Islamic Development Bank (IDB), International Finance Corporation (IFC), and the US Exim Bank. Development agencies from Germany and Denmark have also offered financial support.
The US Exim Bank, notably, has placed no cap on financing, expressing readiness to provide unlimited capital for the project. This follows a recent webinar co-hosted by Pakistan’s Petroleum Ministry and the US Embassy to attract American investment in the mining sector.
The financing momentum is being driven by Petroleum Minister Ali Pervaiz Malik, with support from the Special Investment Facilitation Council (SIFC), as the government pushes to expedite the financial close and launch full-scale operations.
The Reko Diq project, situated in Balochistan’s Chagai district, is one of the world’s largest untapped copper-gold reserves. Revived by Canada’s Barrick Gold, the project is expected to begin production by 2028, with a total investment of $5.5 billion.
According to Barrick CEO Mark Bristow, the mine will generate $74 billion in free cash flow over 37 years, with $2.8 billion in annual exports once operational. The site is expected to produce 400,000 tonnes of copper and 500,000 ounces of gold per year, following a second-phase investment of $3.5 billion.
The mine will also create thousands of jobs, boost local infrastructure, and catalyze economic growth in a historically underserved region.
In a significant strategic move, Saudi Arabia is acquiring a 15% stake in the project through its state-backed firm Manara Minerals, with a potential investment of $1 billion. The federal cabinet has already approved the deal.
To support logistics, Pakistan Railways is building a railway line to connect the Reko Diq mine to Karachi, enabling the export of copper concentrate and gold.
Despite contributing just 3.2% to Pakistan’s GDP, the mineral sector holds untapped potential. Pakistan sits on 92 known minerals, 52 of which are commercially viable, with over 5,000 mines and 50,000 SMEs supporting the ecosystem.
Experts believe that with continued investment, exploration, and infrastructure improvements, Pakistan’s mining sector could become a major engine of economic growth — similar to how countries like China, Brazil, and Italy have capitalized on their mineral wealth.
