ISLAMABAD, March 26: A formal feasibility study has confirmed that the Reko Diq project in Balochistan holds over $60 billion worth of copper and gold reserves at current market prices.
As a result, three state-owned energy companies have significantly increased their financial commitments to the project, now totaling nearly $1.9 billion.
The three state-owned enterprises (SOEs) involved—Oil and Gas Development Company Ltd (OGDCL), Pakistan Petroleum Ltd (PPL), and Government Holdings (Pvt) Ltd (GHPL)—had initially pledged about $300 million each.
This amount has now been raised to $627 million each, with the total combined funding rising to around $1.88 billion from the original $900 million.
The Reko Diq project, based on its current reserves, is expected to produce approximately 13.1 million tonnes of copper and 17.9 million ounces of gold over the life of the mine.
The state-run OGDCL announced that these reserves, when priced at current market values—$3,016 per ounce for gold and $9,815 per tonne for copper—would result in a total yield of more than $60 billion, including $54 billion from gold and $6 billion from copper.
The updated feasibility study also projects a 25% rate of return on investment for the project, making it one of the most lucrative copper-gold ventures globally.
Additionally, the project will be powered entirely by solar energy, setting it apart as the world’s first green project of its kind.
Two Phased Project
The project will be developed in two phases. Phase 1, which is scheduled to start operations in 2028, will process 45 million tonnes of mill feed annually.
Previously, the estimate for Phase 1 was 40 million tonnes. Phase 2, expected to begin by 2034, will increase the processing capacity to 90 million tonnes per year. The overall mine life is anticipated to last 37 years.
The capital cost for Phase 1 is estimated at $5.6 billion, excluding financing costs and inflation. To fund the project, a limited-recourse financing facility of up to $3 billion is being pursued, with the remainder to be contributed by the shareholders.
Read More: Reko Diq Mine to Generate $74 Billion in 37 Years
OGDCL has confirmed that negotiations for this financing are ongoing.
Phase 2 will be funded through a combination of project revenue, additional financing, and shareholder contributions, if necessary.
The project’s expansion potential is also significant, with five of 15 identified porphyry surface expressions within the current mining lease area, offering substantial growth prospects.
In response to the revised feasibility study, OGDCL’s board has approved an increase in its funding commitment to $627 million, including project financing costs.
This adjustment reflects the company’s proportional share of the capital investment.
The estimated shareholder equity contributions after financing costs and inflation are expected to be around $349 million.
Companies Increasing Funding
Similarly, PPL and GHPL have also agreed to increase their funding commitments to $627 million each, with PPL also receiving in-principle approval to secure project financing.
Also Read: Pakistan, Saudi Arabia Near Finalising Reko Diq Deal
OGDCL announced the completion of the updated feasibility study as a major milestone in unlocking the Reko Diq project, one of the largest undeveloped copper-gold resources in the world. OGDCL holds an 8.33% share in the project, which is part of a collective 25% stake shared with PPL and GHPL.
The remaining 75% is held by other stakeholders, including the Government of Balochistan (25%), and Barrick Gold Corporation, which serves as the project operator with a 50% stake. The SOEs’ interests are managed through Pakistan Minerals (Private) Ltd.
