Pakistan Secures $6 Billion in Funding for Reko Diq Copper and Gold Mines

Strategic Insights -

The Pakistani state broadcaster announced on Wednesday that the country had secured $6 billion in international funding for the Reko Diq copper and gold mines in the restive Balochistan province. The project is expected to generate approximately $74 billion in free cash flow over the next 37 years and is seen as an economic lifeline for the region. The funding was approved with the support of the Special Investment Facilitation Council, a special civil-military body that oversees foreign investments, and was announced by the United States, Japan, and other international financial institutions.

Key Takeaways:

  • The Reko Diq copper and gold mines project is expected to generate approximately $74 billion in free cash flow over the next 37 years.
  • The project was revived after a 2022 settlement with Canada's Barrick Gold, which owns a 50 percent stake in the mine.
  • The governments of Pakistan and the province of Balochistan own the other 50 percent of the mine.
  • The project is expected to start production by the end of 2028 and will produce 200,000 tons of copper per year in its first phase.
  • The estimated cost of the first phase is $5.5 billion, and a second phase, estimated to cost $3.5 billion, will double production.
  • The mine is estimated to have reserves lasting 37 years, but through upgrades and expansions, it could potentially be mined for much longer.

Statistics:

  • $6 billion: the amount of international funding secured for the Reko Diq copper and gold mines project.
  • $74 billion: the estimated free cash flow generated by the project over the next 37 years.
  • $5.5 billion: the estimated cost of the first phase of the project.
  • $3.5 billion: the estimated cost of the second phase of the project.
  • 200,000 tons per year: the copper production expected in the first phase of the project.
  • 37 years: the estimated lifespan of the mine's current reserves.
  • 50 percent: the stake owned by Barrick Gold in the Reko Diq mine.
  • 50 percent: the stake owned by the governments of Pakistan and the province of Balochistan in the Reko Diq mine.

Sources:

  • Radio Pakistan
  • Dawn News English
  • Daily Times
  • Asian Development Bank
  • World Bank
  • Barrick Gold