Reko Diq Secures $5.5 Billion Global Financing for Copper-Gold Project

Reko Diq Secures $5.5 Billion Global Financing for Copper-Gold Project

Big Win for Pakistan’s Mining Sector

Reko Diq Mining Company (RDMC) has secured over $5.5 billion in financing commitments from top international financial institutions. This is more than its required $3.74 billion funding for the massive copper and gold project in Chagai, Balochistan.

The project is valued at $7.48 billion and will follow a 50:50 debt-to-equity structure. Construction will begin in December 2025, while commercial operations are expected in 2028.

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Global Lenders Back the Project

Several international banks and agencies have pledged support:

US Export-Import Bank – $1 billion

Japan Bank for International Cooperation – $300 million

Denmark’s export credit agency – guarantees for financing and equipment purchases

International Finance Corporation (IFC) – $700 million (including $400 million subordinated loan)

Asian Development Bank (ADB) – $300 million plus $110 million credit guarantee

Officials confirmed that only the most favorable loan terms will be finalized. The financial closure is expected by September or October 2025.

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Infrastructure Development

To support the project, RDMC has arranged $400 million in bridge financing. This will fund the development of railway links from the mine to Port Qasim via Main Line-2 and Main Line-3. The railway upgrade is crucial for transporting minerals efficiently once the mine becomes operational.

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Long-Term Economic Impact

The Reko Diq mine is expected to operate for 37 years, generating an estimated $74 billion in free cash flows. This makes it one of the most important projects for Pakistan’s economic growth.

The Boards of OGDCL, PPL, and GHPL have already approved $715 million for the project. Strict cost controls aim to keep the total expense within the earlier estimate of $6.765 billion.

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Ownership Structure

The project is being developed under a special-purpose company:

Barrick Gold Corporation – 50% equity

Pakistan Government & Balochistan Government – 50% combined share

Balochistan gets a 10% free-carried interest and 15% funded equity backed by federal guarantees.

This structure ensures Balochistan’s participation without financial risk.

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A Landmark for Pakistan

With strong international support, advanced infrastructure plans, and massive economic potential, Reko Diq is set to become a game-changer for Pakistan’s mining sector and economy.