The Asian Development Bank (ADB) has announced a $410 million financing package to support the development of Pakistan’s Reko Diq copper-gold mine, one of the largest untapped mineral deposits in the world. The mine will be operated by Barrick Gold, according to an official statement issued on Friday.
ADB President Masato Kanda said the Reko Diq copper-gold mine will strengthen the global critical minerals supply chain and play a role in advancing clean energy. He noted the project would also drive digital innovation across the region and beyond.
Kanda described ADB’s involvement as a “game-changer” for Pakistan. He said the project would generate quality employment while supporting Pakistan’s transition toward a more resilient and diversified economy.
Islamabad sees the mine as a catalyst to attract more foreign investment into its mineral sector, particularly in the exploration of rare earth elements. Officials revealed that the government has already received interest from the Trump administration and has offered possible future concessions to U.S. companies.
The financing package includes two loans worth $300 million to Barrick Gold and a $110 million partial credit guarantee for the equity contribution of the Government of Balochistan. The project, with a total cost of $6.6 billion, is equally shared between Barrick and Pakistan’s federal and provincial governments.
Developers expect the Reko Diq copper-gold mine to begin producing copper and gold by 2028. The mine is projected to generate nearly $70 billion in free cash flow over its operational lifespan.
The project aims to raise around $2 billion in total. Earlier, it secured $700 million in financing from the International Finance Corporation (IFC), a private investment arm of the World Bank. Discussions are also underway with the U.S. Export-Import Bank, Export Development Canada, and Japan’s JBIC. Project director Tim Cribb told Reuters in April that term sheets with these institutions are expected to be finalized within this quarter.
The Reko Diq copper-gold mine has faced years of delay due to legal disputes, which were finally settled in 2022. Once fully operational, the site is expected to rank among the five largest copper mines in the world.
In its first phase, the mine will produce an average of 800,000 tonnes of copper concentrate annually. Experts say this output will be vital in addressing the looming global copper shortage.
Copper is recognized as a critical mineral for both clean energy and digital transformation. It is essential for renewable energy systems, electric vehicles, batteries, smartphones, and data centers.
Barrick Gold has stated that the Reko Diq copper-gold mine could extend beyond its planned 37-year life through future upgrades and continued exploration.
