Pakistan’s largest mining venture, the Reko Diq copper-gold project, has cleared a major financing hurdle after the US Export–Import (EXIM) Bank approved a $1.25 billion loan, securing nearly half of the project’s $3.5 billion debt requirement.
The approval is part of a broader US congressional push to channel investments into securing global mineral supply chains. Canada’s Export Development Canada (EDC) is co-financing alongside EXIM, taking their combined contribution to $1.4 billion. Both institutions will also supply equipment and services for mine construction.
Senior officials involved in the negotiations said $3.5 billion out of $5.5 billion in commitments from multilateral and export credit agencies has now been arranged. Full financial closure of the $7.7 billion project is expected in the first two weeks of December, ahead of the Reko Diq Mining Company (RDMC) board meeting scheduled for 9 December, where final approval is likely.
Global Lenders Back Pakistan’s Largest Mining Project
Confirmed financing commitments include:
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$700 million — International Finance Corporation (IFC)
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$300 million — Asian Development Bank (ADB)
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~$300 million — Japan Bank for International Cooperation (JBIC)
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$900 million — Germany’s Euler Hermes & KfW, and Sweden’s EKN (tied to copper and gold off-take agreements)
Collectively, these contributions represent nearly 30% of the total financing structure.
Debt–Equity Structure Finalised
The project follows a 50:50 debt-to-equity model. RDMC is jointly owned by:
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Barrick Gold Corporation – 50%
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Government of Pakistan – 25% (via OGDCL, PPL, GHPL)
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Government of Balochistan – 25%
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Includes 10% free-carried interest
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15% fully funded share
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RDMC’s Country Manager Zarar Jamali confirmed that the $3.5 billion loan has been secured from 11 international banks, including lenders from Japan, Canada and the United States. He added that the first export shipment is targeted for the first quarter of 2029.
Project Cost Rises to $7.7 Billion
Pakistan recently revised the cost of Reko Diq’s first phase to $7.7 billion, marking a 79% increase from earlier estimates. Officials attributed the rise to higher borrowing costs and additional buffers against global price volatility.
Jamali said the first phase of construction carries an investment value of $5.5 billion.
Railway Upgrades for Export Logistics
In parallel to mine development, RDMC has pledged $390 million in bridge financing to upgrade Pakistan Railways’ Main Line-2 and Main Line-3, key routes that will move processed copper and gold to Port Qasim for export. The upgrades are scheduled for completion ahead of production in 2028.
Pakistan Nears Operationalisation of Two Major Mines
According to Shamsuddin Sheikh, CEO of National Resources Limited, Pakistan is on track to operationalise two major mining projects—Reko Diq (~$8bn) and Saindak (~$1.5bn)—before 2030.
