Prime Minister Directs Railway Connection for Reko Diq Mine by 2028

Prime Minister Shehbaz Sharif has issued a directive to connect the Reko Diq copper-gold mining site in Balochistan to Pakistan's railway network by 2028. This directive aligns with the expected start of commercial production at the project, which is scheduled to commence in 2028. The project, being developed by Barrick Gold Corporation, is expected to generate up to $74 billion in free cash flow over its estimated 37-year operational life. The International Finance Corporation (IFC) is expected to provide a $400 million loan to support development costs.

Key Takeaways:

• Prime Minister Shehbaz Sharif has directed the authorities to connect the Reko Diq mining site to Pakistan's railway network by 2028.
• The project, being developed by Barrick Gold Corporation, is expected to generate up to $74 billion in free cash flow over its estimated 37-year operational life.
• The International Finance Corporation (IFC) is expected to provide a $400 million loan to support development costs.
• The railway link to Reko Diq is expected to facilitate mineral transport, accelerate economic development in Balochistan, and generate employment opportunities in the region.
• The Prime Minister has instructed the formation of an inter-ministerial committee to develop a detailed financing strategy for railway development and its extension to the Reko Diq site.
• Deputy Prime Minister Ishaq Dar, Defence Minister Khawaja Muhammad Asif, and other senior government officials attended the meeting.

Statistics:

• Project operational life: 37 years
• Projected free cash flow: up to $74 billion
• Loan amount from International Finance Corporation (IFC): $400 million
• Expected start of commercial production: 2028
• Targeted completion of railway connection: 2028

Sources:

• "Prime Minister directs railway connection for Reko Diq mine." The Express Tribune, 27 Apr. 2023,
• "Barrick Gold Corporation." World's Largest Copper and Gold Deposits, 2023.