Islamabad, August 21, 2025 — The Asian Development Bank (ADB) has approved a $410 million financing package to support the development of the Reko Diq copper and gold mine in Balochistan, Pakistan. The mine, operated by Barrick Gold Corporation, is one of the world’s largest untapped mineral deposits and is considered a landmark project for Pakistan’s economy.
Financing Details
The $410 million package will be divided into two components:
- $300 million in loans provided directly to Barrick Gold.
- $110 million in financing guarantees extended to the Government of Pakistan.
This package builds on earlier funding commitments, including a $700 million agreement with the International Finance Corporation (IFC). Negotiations with other potential financiers — including the U.S. Export-Import Bank, Export Development Canada, and Japan’s JBIC — are also in progress, with term sheets expected later this year.
Ownership Structure
Reko Diq is co-owned under a 50-50 partnership model:
- Barrick Gold – 50%
- Government of Pakistan (Federal and Balochistan) – 50%
This structure ensures that both federal and provincial governments share in the long-term economic benefits.
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Production Timeline and Economic Impact
- Production is scheduled to begin in 2028.
- Phase 1 will produce around 200,000 metric tons of copper annually.
- Phase 2 expansion will increase production to 400,000 metric tons annually.
- The project has an estimated lifespan of 37 years, with potential for extension.
- Expected free cash flow is nearly $70 billion over the life of the project.
Strategic Importance for Pakistan
The $6.6 billion Reko Diq project is expected to be a game-changer for Pakistan’s mining industry. Beyond copper and gold production, the project could also pave the way for rare earth mineral exploration, drawing further international investment.
The project is also expected to:
- Create thousands of jobs in Balochistan.
- Improve regional infrastructure.
- Enhance Pakistan’s profile in the global mineral supply chain.
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Background
Reko Diq has faced years of delays due to a prolonged legal battle, which was finally resolved in 2022. The resolution cleared the path for Barrick and the Government of Pakistan to revive the project, attracting strong international financial backing. Today, it stands as one of Asia’s most important upcoming mining projects.
Key Project Highlights
| Aspect | Details |
|---|---|
| ADB Financing | $410 million ($300M loans + $110M guarantees) |
| Total Project Cost | $6.6 billion |
| Ownership Structure | 50% Barrick Gold; 50% Pakistan (Federal + Balochistan) |
| Production Start | 2028 |
| Copper Output (Phase 1) | 200,000 metric tons/year |
| Copper Output (Phase 2) | 400,000 metric tons/year |
| Project Lifespan | 37 years (extendable) |
| Projected Free Cash Flow | ~$70 billion |
| Other Key Financiers | IFC ($700M), US EXIM, Canada, JBIC |
| Legal Dispute | Settled in 2022 |
| Strategic Importance | Boost to mining, rare earth exploration, FDI |
