Japan Expresses Interest in Reko Diq Mining Project in Pakistan
Japan has shown interest in joining the multibillion-dollar Reko Diq copper and gold mining project, potentially expanding its investment in Pakistan beyond the automobile sector.
The Economic Coordination Committee (ECC) of Pakistan’s cabinet was recently informed that Japan is keen to invest alongside local and international partners. The Finance Division assured that the arrangement will not lead to capital flight through dollar remittances.
Earlier, Saudi Arabia had also expressed plans to inject capital into the project, including the purchase of a 15% stake. Officials told the ECC that sovereign guarantees from the government, along with support from the Asian Development Bank (ADB) for Balochistan Mineral Resource Limited (BMRL) equity, have been included in the investment framework.
According to the Petroleum Division, the project’s total equity is $900 million, split equally between sponsors and partner agencies. State-owned enterprises are committed to repatriating $2.1 billion through Pakistan Minerals Private Limited over seven years, either as equity or shareholder loans. Financing of $3.5 billion is being arranged, with health, safety, security, and community welfare set as key priorities.
The Petroleum Division also sought approval for final agreements, including permissions for BMRL to repatriate $1.3 billion over seven years to meet its shareholding obligations. Oil and Gas Development Company and Pakistan Petroleum Ltd will initially cover foreign exchange needs from their own resources, with government support pledged in case of shortfalls.
The ECC highlighted the strategic importance of the Reko Diq project, noting its potential to reshape Balochistan’s economy and contribute significantly to Pakistan’s overall growth.
