By Staff Reporter
ISLAMABAD: Barrick Gold Corp. is in advanced talks to secure over $2 billion from international lenders for its Reko Diq copper-gold mine in Pakistan, a pivotal project poised to transform the South Asian nation into a top-tier mining hub.
The Toronto-based miner aims to finalize term sheets by early Q3, Tim Cribb, Reko Diq’s project director, told Reuters on the sidelines of the Pakistan Minerals Investment Forum.
Key commitments include $650 million from the International Finance Corp. (IFC) and the World Bank’s International Development Association, $500 million–$1 billion from the US Export-Import Bank, and $500 million from a consortium of Asian and Canadian development banks.
“We expect to close the term sheet in either late Q2 or early Q3,” said Cribb.
The funding will support the development of the Reko Diq mine, one of the world’s largest underdeveloped copper-gold deposits, which is hoped to generate $70 billion in free cash flow and $90 billion in operating cash flow.
Barrick Gold and the governments of Pakistan and Balochistan own the project jointly.
The financing for phase one of the project, which is expected to start production in 2028, is being discussed with multiple lenders.
Cribb said the rail infrastructure financing talks are also underway, with initial costs pegged at $350 million.
The lenders are expected to secure offtake agreements, with potential clients including countries in Asia such as Japan and Korea, as well as European nations like Sweden and Germany, which are looking to secure copper supplies for their industries, he added.
A revised feasibility study has boosted phase-one processing capacity to 45 million tons annually (mtpa) from 40 mtpa, with phase two targeting 90 mtpa.
However, accelerated extraction has trimmed the mine’s lifespan to 37 years from 42, though Barrick CEO Mark Bristow said untapped reserves could extend operations to 80 years.
Phase-one costs have ballooned to $5.6 billion from $4 billion due to expanded infrastructure and inflation.
Addressing the Islamabad forum, Bristow declared Reko Diq a “beacon that leads Pakistan into the ranks of the top global mining jurisdictions,” comparing its potential to copper giants Chile, Peru, and the Democratic Republic of Congo.
The mine is expected to produce 240,000 tons of copper and 300,000 ounces of gold annually in phase one, scaling to 400,000 tons and 500,000 ounces in phase two.
“This mine is set to become one of the lowest-cost copper producers in the world,” he said. “There is every reason to believe that Reko Diq will still be operating past the end of this century.”
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