OGDCL Approves $715 Million Investment in Reko Diq Mining Project
In a landmark decision for Pakistan’s mining and energy sectors, the shareholders of Oil & Gas Development Company Limited (OGDCL) have approved a massive investment of up to $715 million in the Reko Diq Mining Company (RDMC). The approval came during the company’s Extraordinary General Meeting (EGM) held on September 10, 2025.
This contribution represents OGDCL’s pro-rata share of the committed expenditure for Phase 1 of the Reko Diq project. The funds will be provided to Pakistan Minerals (Private) Limited (PMPL) through a combination of equity and shareholder loans. According to the project’s feasibility study, OGDCL’s share covers one-third of the total required funding.
The Reko Diq project, located in Balochistan, is regarded as one of the largest undeveloped copper and gold reserves in the world. It is expected to play a transformative role in boosting Pakistan’s economy, job creation, and foreign investment inflows.
Key Highlights of the Investment:
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$715 million investment approved, subject to inflation and financing cost adjustments.
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OGDCL, Pakistan Petroleum Limited (PPL), and Government Holdings (Private) Limited (GHPL) will provide corporate guarantees to secure project financing.
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Guarantees include provisions for indemnity, tax gross-ups, and capped liability for SOEs.
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A special “par call right” will allow SOEs to purchase their share of secured debt obligations under certain conditions.
Project Leadership and Structure
The Reko Diq project is a joint venture between:
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Barrick Gold Corporation (operator with a minimum 50% stake),
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Government of Balochistan,
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SOEs (OGDCL, PPL, and GHPL).
Phase 1 will focus on building the mine’s infrastructure and production facilities, while later phases will expand operations to maximize output.
Economic Impact
Experts believe the project will bring in billions of dollars in long-term revenue, create thousands of jobs, and strengthen Pakistan’s foreign exchange reserves. It also positions Pakistan as a key player in the global copper and gold market.
With OGDCL’s $715 million approval, the project has crossed a major milestone and is now moving closer to the development stage, marking it as one of the most significant investments in Pakistan’s mining history.
