In a major boost for Pakistan’s economy, the Asian Development Bank (ADB) is set to provide $410 million in financing for the Reko Diq mining project, sources confirmed on Thursday.
The package, which is expected to be formally announced after approval from ADB’s board, includes a $300 million loan and a $110 million financing guarantee.
Lifeline for mining sector
Located in Balochistan, the $6.6 billion Reko Diq project is a joint venture between Barrick Gold Corporation and the government of Pakistan. Under the agreement, Barrick Gold holds a 50% stake, while the federal and provincial governments share the remaining 50%.
The project aims to start gold and copper production by 2028, with the potential to generate up to $70 billion in revenue over 37 years.
Phased expansion of production
In the first phase, Reko Diq is expected to extract 200,000 tons of copper annually, with output doubling to 400,000 tons after expansion. The project is considered one of the largest undeveloped copper and gold deposits in the world, making it vital for Pakistan’s economic growth and resource diversification.
Global financing and investment
Beyond ADB’s support, the International Finance Corporation (IFC) has already pledged $700 million for the project. Pakistan is also in talks with financial institutions from the United States, Canada, and Japan to secure further investment and backing for the mega mining venture.
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