Japan Bank for International Cooperation Joins Reko Diq Lender Group, Boosting Pakistan's Mining Sector

Strategic Insights -

Petroleum Minister Ali Pervaiz Malik met with a JBIC delegation led by Director-General of Mining and Metals Finance Taro Kato to discuss Japan's role in the landmark project. The minister hailed JBIC's participation as a pivotal moment, emphasizing its potential to set new benchmarks for responsible mining in Pakistan. The project, set to start production in 2028, will generate $70 billion over 37 years, create thousands of jobs, and fund healthcare and education in Balochistan.

Key Takeaways:

  • Japan Bank for International Cooperation (JBIC) has joined the lender group for Pakistan's Reko Diq copper and gold project, a significant step for foreign investment in the country's mining and energy sectors.
  • The project, led by Canada's Barrick Gold, is expected to generate $70 billion over 37 years and create thousands of jobs.
  • The project will produce 800,000 tonnes of copper concentrate annually in its first phase, doubling by 2034.
  • The project has received pledges worth nearly $6 billion, almost double its requirements.
  • Backers of the project include the US, Japan, the World Bank, and Asian Development Bank, which have approved over $1 billion.
  • Pakistan's Petroleum Minister Ali Pervaiz Malik has assured the Japanese delegation of unconditional support for the project across all levels of government.
  • The government aims to ease the investment process and make Pakistan a premier destination for international capital and expertise.

Statistics:

  • The Reko Diq copper and gold project is expected to generate $70 billion over 37 years.
  • The project will produce 800,000 tonnes of copper concentrate annually in its first phase, doubling by 2034.
  • The project has received pledges worth nearly $6 billion, almost double its requirements.
  • The project has booked the backing of major global institutions, including the World Bank and Asian Development Bank, which have approved over $1 billion.
  • The project is led by Canada's Barrick Gold, with a total investment of $6.7 billion in the first phase.

Sources:

  • Pakistan's Petroleum Minister Ali Pervaiz Malik
  • Director-General of Mining and Metals Finance Taro Kato
  • Japan Bank for International Cooperation (JBIC)
  • The Reko Diq copper and gold project
  • World Bank
  • Asian Development Bank
  • Petroleum World News
  • Dawn News