Reko Diq, the copper-gold deposit in Balochistan’s Chagai district, is moving from negotiation to construction finance. Barrick, the Canadian mining company, and its Pakistani partners are seeking up to $3.5 billion in debt for a project estimated to cost about $9bn, Metals Wire reported. Barrick’s chief executive Mark Bristow has described it as a “G7-country financing package”.
Who owns the mine
Ownership is split 50:50 between Barrick and Pakistani stakeholders: the federal government’s state-owned enterprises and the Balochistan government. That structure gives the province a direct share in the project’s earnings.
Who is lending
- World Bank group: the boards of the IFC and IDA cleared up to $700 million in loans in June.
- Export credit and development lenders: project director Tim Cribb outlined requests of $500m to $1bn from US EXIM and about $500m from other institutions including the Asian Development Bank, Export Development Canada and Japan’s JBIC.
- Others in talks: the US International Development Finance Corporation and export lenders in Germany.
Long-discussed Saudi funding has not materialised and is on hold, according to the same report. The ADB separately approved a $410m package for the project, Profit reported.
Production timeline
First production is targeted for the end of 2028. The first phase is projected to produce roughly 200,000 to 250,000 tonnes of copper a year, with a second phase planned later. Barrick estimates about $74bn in free cash flow over a 37-year mine life.
What it means for Balochistan
Jobs and skills
Construction and operations will need thousands of workers, and the province’s share will depend on how much training reaches people in Chagai and nearby districts.
Security
Balochistan recorded 131 militant attacks in September alone, according to PICSS data covered in our security report. Protecting the site, roads and the rail route to port will be a major cost and a test for the province.
More from the province in our Balochistan section and on investment in Business.
Sources are linked throughout this article. AajMirror verifies figures against the original reports; if you spot an error, see our corrections policy.