The Asian Development Bank (ADB) will provide $410 million to support the development of the Reko Diq copper-gold mine in Balochistan, Pakistan. This site is one of the largest untapped mineral reserves in the world and will be operated by Barrick Gold, a leading global mining company.
According to ADB President Masatsugu Asakawa, the project will help support global demand for critical minerals, contribute to clean energy goals, and encourage digital innovation. He also said it would benefit Pakistan by creating quality jobs and supporting a stronger, more diverse economy.
Pakistan hopes the Reko Diq project will attract more international investment into its mineral sector, especially in rare earth elements. Interest has already come from the United States, with Pakistan offering future opportunities to U.S. companies.
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The ADB financing includes two loans worth $300 million to Barrick and a $110 million partial credit guarantee to support the Government of Balochistan’s share in the project. Reko Diq is a $6.6 billion joint venture, with 50% owned by Barrick Gold and 50% shared between the federal and provincial governments.
Production is expected to begin in 2028, with the mine projected to generate around $70 billion in free cash flow during its operational life. In its first phase, it will produce about 800,000 tonnes of copper concentrate annually. Once fully developed, Reko Diq will rank among the world’s five largest copper mines.
Copper is a vital material used in renewable energy technologies, electric vehicles, batteries, smartphones, and data centers. The global demand for copper is growing, making this project important for both the energy transition and digital development.
The developers aim to raise over $2 billion in total financing. In addition to ADB’s support, they have already secured $700 million from the International Finance Corporation (IFC), the World Bank’s private sector arm. They are also in talks with other financial institutions, including the U.S. Export-Import Bank, Export Development Canada, and Japan’s JBIC, with agreements expected soon.
The Reko Diq project had been delayed for years due to legal disputes, which were resolved in 2022. Barrick Gold believes the mine could operate well beyond its initial 37-year life, depending on future upgrades and further exploration.
