IFC boosts Reko Diq mine with $400 million loan, total financing hits $700 million

By Staff Reporter

ISLAMABAD: The International Finance Corporation will provide a $400 million subordinated loan for Pakistan’s Reko Diq copper-gold mine, according to an IFC disclosure on Friday, boosting its total financing for the project to $700 million and signaling strong support for the country’s natural resources sector.

The latest commitment adds to a $300 million package unveiled in April, bringing the IFC’s contribution to a hefty $700 million. The mine, with an estimated price tag of $6.6 billion, will be funded through a blend 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 disclosure said, noting that other parallel lenders will cover the remaining debt financing.

Subordinated debt, which takes a backseat to senior loans in repayment priority, plays a key role in absorbing risk, paving the way for broader lender participation. The move underscores the IFC’s confidence in the project’s potential.

A slew of heavy-hitting financiers, including the US EXIM Bank, Asian Development Bank, Export Development Canada, and Japan’s JBIC, are expected to join the financing package, project director Tim Cribb told Reuters in April. Term sheets are slated to close by early in the third quarter, putting the project on track for its next milestones.

IFC chief Makhtar Diop signaled the institution’s broader ambitions earlier this year, saying it was “doubling down” on Pakistan with a sharp focus on infrastructure, energy, and natural resources. The Reko Diq investment fits squarely into that strategy.

Nestled in Balochistan, Reko Diq ranks among the world’s largest undeveloped copper-gold deposits, promising a major economic lift for Pakistan. Ownership is split, with Barrick Gold holding a 50% stake, three federal state-owned enterprises controlling 25%, and Balochistan province owning 15% on a fully funded basis and 10% on a free carried basis.

Barrick Gold is steering the mine’s development, with production expected to kick off in 2028. The company projects the site could generate up to $74 billion in free cash flow over its estimated 37-year lifespan.