Reko Diq Secures $5.5 Billion in Global Financing Commitments

The Reko Diq Mining Company (RDMC) has secured financing commitments worth over $5.5 billion from international financial institutions, surpassing its $3.74 billion funding requirement for the large-scale copper and gold project in Balochistan’s Chagai district.

Financing Structure and Timeline

The $7.48 billion project is being developed on a 50:50 debt-to-equity basis. Construction is scheduled to begin in December 2025, with commercial operations expected by 2028.

Key commitments include:

• US Export-Import Bank: around $1 billion
• Japan Bank for International Cooperation: $300 million
• Denmark’s export credit agency: guarantees to support bank financing and equipment procurement

Officials noted that only the most favorable terms will be finalized, as the current commitments carry more lenient conditions compared to standard commercial loans. Financial closure is anticipated by late September or early October 2025.

Infrastructure Development

To support logistics, RDMC has arranged $400 million in bridge financing for the development of railway links from the mine site to Port Qasim via Main Line-2 and Main Line-3. The railway upgrade is expected to be completed before the mine becomes operational and is seen as vital for the efficient transport of extracted minerals.

Long-Term Economic Impact

The Reko Diq project, with a planned 37-year operational life, is forecast to generate $74 billion in free cash flows, making it one of Pakistan’s most significant long-term economic growth drivers.

The boards of Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings (Private) Limited (GHPL) have already approved $715 million in funding, reinforcing the total project valuation of $7.48 billion. Officials remain confident that through strict cost management, the project can be executed within the earlier $6.765 billion estimate.

Ownership and Provincial Stake

RDMC, the special-purpose vehicle overseeing development, is jointly owned by:

• Barrick Gold Corporation: 50% equity
• Government of Pakistan and Government of Balochistan: 50% combined equity

Balochistan’s share includes:

• 10% free-carried interest
• 15% fully funded equity, backed by federal guarantees, ensuring provincial participation without financial burden.

Strong International Backing

The project has drawn notable interest from global lenders:

• International Finance Corporation (IFC): $700 million, including a $400 million subordinated loan backed only by the balance sheets of Pakistani state-owned enterprises, without sovereign guarantees.
• Asian Development Bank (ADB): $300 million, marking its first mining-sector investment in more than four decades, along with a $110 million credit guarantee to strengthen Balochistan’s equity position.

The robust financial commitments highlight international confidence in Reko Diq’s potential and position the project as a cornerstone for Pakistan’s resource-led economic growth.