By Staff Reporter
ISLAMABAD: The Asian Development Bank has committed $410 million to propel Pakistan’s Reko Diq copper mine, one of the world’s largest untapped deposits, toward production, Reuters reported on Thursday.
Operated by Barrick Gold Corp., the project is a linchpin in Islamabad’s strategy to lure foreign investors to its mineral sector, with ambitions to tap rare earth deposits critical for global industries. The financing package, split into $300 million in loans to Barrick and a $110 million guarantee for Pakistan’s government, will fuel development of the $6.6 billion project in Balochistan, sources told Reuters ahead of an official announcement.
The mine, set to yield copper and gold from 2028, is projected to generate $70 billion in free cash flow over its lifespan, offering a lifeline to Pakistan’s economy. The ADB, Pakistan’s petroleum ministry, and Barrick didn’t immediately respond to requests for comment.
Pakistan sees Reko Diq as a gateway to revitalising its mineral sector. The project has already drawn interest from the Trump administration, with Islamabad dangling future concessions to US firms to cement investment. The mine, equally owned by Barrick and Pakistan’s federal and provincial governments, is a test case for the country’s ability to harness its vast, underexplored resources.
The project’s developers are in talks with global financiers, including the US Export-Import Bank, Export Development Canada, and Japan’s JBIC, aiming to secure term sheets this quarter, project director Tim Cribb told Reuters in April. A prior $700 million commitment from the World Bank’s International Finance Corporation bolsters the project’s financial backbone, with plans to raise over $2 billion in total.
Reko Diq is expected to produce 200,000 metric tons of copper annually in its first phase, doubling to 400,000 tons after expansion. Barrick says the mine’s 37-year lifespan could stretch further with upgrades and exploration, tapping deeper into Balochistan’s mineral riches. The region, despite security challenges, holds significant deposits of copper, gold, and rare earths, essential for everything from electric vehicles to wind turbines.
Copyright © 2021 Independent Pakistan | All rights reserved
