Pakistan has already chalked out a $1.9 billion funding plan to execute the Reko Diq copper and gold mining project. Total project funding has been estimated at $4.297 billion. Photo: File
ISLAMABAD:
Pakistan and its partners are set to achieve financial close in the next two weeks and secure $3.5 billion in funding for the multibillion-dollar Reko Diq copper and gold mining project.
Sources said that Pakistan had formulated Plan A and B to execute the project. Under Plan A, it had to seek financing from lenders. They said that the Pakistani side and its partners had deployed machinery at project site and had already started construction work without waiting for financial close. The financial close ceremony will be held in January next year.
A legal adviser of lenders briefed Pakistan’s petroleum minister and the managing director of Oil and Gas Development Company (OGDC) about the financial close.
They were informed that financial arrangements for the Reko Diq project had been completed and the lenders were engaged in documentation. Pakistan believes that the financial close is expected to be achieved during the next two weeks.
A meeting was held between Federal Minister for Petroleum Ali Pervaiz Malik, OGDC MD Ahmed Hayat Lak and Munib Hussain, a London-based partner at international law firm Milbank.
They reviewed key developments in the energy and resource sector, including the current status of financing for the Reko Diq project. Briefing the minister and the OGDC leadership, Hussain, who represents the project’s financiers, shared positive updates on achieving financial close. The meeting also discussed additional opportunities across Pakistan’s mining and oil & gas sectors, with all parties expressing their commitment to supporting strategic investments and sector-specific growth.
Despite its huge potential, the mineral sector currently contributes around 3.2% to the gross domestic product (GDP), with exports accounting for only 0.1% of the world’s total. However, with increasing exploration, foreign investment and infrastructure improvements, the mining industry is poised for significant expansion. Pakistan’s mineral-rich landscape covers an outcrop area of 600,000 square kilometres. With 92 known minerals, 52 of which are commercially exploited, Pakistan produces an estimated 68.52 million metric tons of minerals annually. The sector supports over 5,000 operational mines and 50,000 small and medium enterprises (SMEs), providing direct employment to 300,000 workers.
The local mining sector is increasingly attracting foreign investment as global firms are eyeing the untapped mineral reserves. The Reko Diq copper and gold project, located in the Chagai district of Balochistan, has the world’s largest untapped copper reserves and stands as a milestone for Pakistan’s mining ambitions. The project, revived by Canada’s Barrick Gold, is expected to start producing copper and gold by 2028, with an initial investment of $5.5 billion. According to Mark Bristow, CEO of Barrick Gold, which owns a 50% stake in the project, the reserves are expected to generate $74 billion in free cash flow over the next 37 years. The mine is anticipated to generate $2.8 billion in annual exports and create thousands of jobs. A planned expansion will increase copper production to 400,000 tonnes and gold output to 500,000 ounces per year.
