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Mining industry

Pakistan Secures Over $5 Billion in Financing for Reko Diq Copper and Gold Mining Project

Strategic Insights

— 1 min read

The Pakistani government has secured over $5 billion in financing commitments from international donors for the Reko Diq copper and gold mining project in Balochistan, exceeding the estimated funding requirement of $3 billion. The Asian Development Bank (ADB), Islamic Development Bank (IDB), International Finance Corporation (IFC), and US Exim Bank are among the key donors, with additional offers from German and Danish development agencies. The project, revived by Canada's Barrick Gold, is expected to begin copper and gold production by 2028 and generate significant revenue and employment opportunities.

Key Takeaways:

  • The Reko Diq project has secured over $5 billion in financing commitments from multinational donors, exceeding the estimated funding requirement of $3 billion.
  • Key donors include the Asian Development Bank (ADB), Islamic Development Bank (IDB), International Finance Corporation (IFC), and US Exim Bank, with additional offers from German and Danish development agencies.
  • The project, revived by Canada's Barrick Gold, is expected to begin copper and gold production by 2028 and generate $74 billion in free cash flow over 37 years.
  • Annual exports are anticipated to generate $2.8 billion, with thousands of jobs created.
  • A planned expansion will further increase copper production to 400,000 tonnes and gold output to 500,000 ounces per year, with an additional $3.5 billion investment.
  • Under an intergovernmental agreement, Pakistan's federal cabinet has approved the sale of a 15% stake in the Reko Diq project to Saudi Arabia's Manara Minerals for an investment of $1 billion.
  • The project will be managed through a railway track built in partnership with Pakistan Railways, facilitating the transportation of mining supplies to Karachi and the export of copper concentrate and gold.

Statistics:

  • Sources: The Express Tribune
  • Total financing commitments for the Reko Diq project: over $5 billion
  • Estimated funding requirement for the project: $3 billion
  • Expected annual exports: $2.8 billion
  • Projected free cash flow over 37 years: $74 billion
  • Expected copper production per year: 400,000 tonnes
  • Expected gold output per year: 500,000 ounces
  • Additional investment for expansion: $3.5 billion
  • Investment from Saudi Arabia's Manara Minerals: $1 billion

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