The Reko Diq project is expected to yield 13.1 million tonnes of copper and 17.9 million ounces of gold over the 37-year life of the mine.
As a formal feasibility study confirmed more than $60 billion worth of copper and gold reserves at the Reko Diq project in Balochistan at prevailing prices, three state-owned energy enterprises have more than doubled their funding commitment to nearly $1.9 billion.
Read more: Rs1.79 Billion allocated for Reko Diq security
Three SOEs — Oil and Gas Development Company Ltd (OGDCL), Pakistan Petroleum Ltd (PPL), and Government Holdings (Pvt) Ltd (GHPL) — had initially committed about $300 million each to the project. The trio has now raised their total funding from approximately $900 million to $1.88 billion, with each contributing $627 million.
The Reko Diq project will produce 13.1 million tonnes of copper and 17.9 million ounces of gold over its lifespan (100% basis). OGDCL confirmed a lucrative 25% rate of return on investment for one of the world’s largest copper-gold projects. Solar energy will entirely power the operations, making it the first green project of this magnitude globally.
With current market prices at $3,016 per ounce of gold and $9,815 per tonne of copper, the project generates over $60 billion in value, including $54 billion from gold and $6 billion from copper. The updated feasibility study increases the first phase’s annual mill feed processing to 45 million tonnes starting in 2028, up from the previously estimated 40 million tonnes. By 2034, the second phase aims to double the processing capacity to 90 million tonnes per year.
The mine will operate for 37 years, divided into two phases. Phase 1 will cost an estimated $5.6 billion (excluding financing costs and inflation) and is set to begin operations in 2028. The company is seeking a limited-recourse project financing facility of up to $3 billion, with shareholders contributing the remainder. Phase 2 will be funded by generating revenue, securing additional financing, and potentially receiving shareholder contributions.
OGDCL’s board of directors has approved increasing the company’s funding commitment to $627 million, inclusive of financing costs, reflecting its proportional capital investment share. The company expects shareholder equity contributions to amount to $349 million, adjusted for the actual financing costs and inflation.
Similarly, PPL has also approved increasing its funding commitment to $627 million, aligning with its stake in the project. After considering financing costs, PPL estimates shareholder contributions at $349 million. GHPL has reportedly made a similar decision.
According to OGDCL, the updated feasibility study marks a significant milestone in unlocking one of the world’s largest undeveloped resources of copper and gold. OGDCL holds an 8.33% share in the project as part of a collective 25% stake held by the three Pakistani SOEs. The SOEs’ interests are managed through Pakistan Minerals (Private) Ltd.
The Government of Balochistan owns 25% of the remaining shares, with Balochistan Mineral Resources Ltd funding 15% and 10% carried on a free basis. Barrick Gold Corporation holds the remaining 50% stake and operates the project.
