ISLAMABAD – Canadian mining giant Barrick Gold is preparing to raise $3 billion in international financing for its ambitious Reko Diq Copper & Gold Project in Balochistan, marking a major step forward for one of the world’s largest undeveloped copper-gold deposits.
Speaking to Media, Barrick President and CEO Mark Bristow confirmed that a financing agreement with the World Bank and its commercial arm, the International Finance Corporation (IFC), is expected to be signed by mid-year.
Final financing packages worth $650 million are anticipated by the third quarter of 2025, with a $500 million drawdown expected by the fourth quarter.
While Bristow refrained from disclosing specific details about other financiers, citing pending approvals, he revealed that the first phase of the project—expected to be completed by 2028—will require a total investment of $6 billion.
Of this, half will be contributed as equity by Barrick and the Government of Pakistan. A second phase, spanning 32 years, is projected to cost an additional $3.5 billion, to be financed from the project’s internal revenues.
“The first phase is far more expensive,” Bristow said, noting that capital expenditure would be significantly higher in the initial development stage.
In a notable development, Bristow emphasized that this will be the first time the World Bank is directly financing a mining project.
Read More: Barrick Approves Project Plan for Reko Diq Copper-Gold Mine in Pakistan
He added that major Western financial institutions, led by the IFC, will be key participants in the $3 billion funding, which will include a mix of loans and credit guarantees.
These instruments will facilitate additional funding from private banks.
Financing Consortium
The financing consortium is expected to include institutions such as the US Exim Bank, US Sovereign Fund, Germany, the Asian Development Bank, Japan, South Korea, and several Scandinavian countries.
In total, the $6 billion first-phase investment will be comprised of $1.7 billion from Barrick Gold and $1.4 billion from Pakistani state-owned enterprises, with the remainder secured through international financing.
When asked if the project cost includes onsite copper and gold smelting facilities, Bristow clarified that such infrastructure is not viable during the first phase, and may only be considered if another similar project emerges nearby.
He added that incorporating smelters now would unnecessarily inflate the project’s cost.
The project’s operations will initially rely on a 150MW heavy fuel oil (HFO)-powered plant, to be supplemented later by a 150MW solar power plant, and eventually reinforced by supply from the national grid, which will require upgrades.
Also Read: Reko Diq: Federal Govt Shows full financial support
The first phase will require a total of 180MW, with an additional 150MW needed in the second phase.
The mine is expected to handle a throughput of 45 million tonnes per annum (mtpa) during the first five years, increasing to 90 mtpa in the subsequent 32-year second phase.
According to OGDCL, one of the project’s shareholders, Reko Diq’s estimated reserves are projected to yield 13.1 million tonnes of copper and 17.9 million ounces of gold over the full lifespan of the mine (100% basis).
A recent feasibility study has confirmed an attractive 25% internal rate of return (IRR), making it one of the most lucrative mining ventures in the global copper-gold sector.
