Reko Diq Project Secures $5.5 Billion Financing Commitments for Copper-Gold Mine
By Business Desk | September 16, 2025
ISLAMABAD: The Reko Diq Mining Company (RDMC) has received more than $5.5 billion in financing commitments from international financial institutions, surpassing its $3.74 billion funding requirement for the large-scale copper and gold project in Balochistan’s Chagai district.
The $7.48 billion venture is structured on a 50:50 debt-to-equity ratio and is scheduled to begin construction in December 2025, with commercial operations targeted for 2028.
Among the financing partners, the US Export-Import Bank has pledged around $1 billion, while the Japan Bank for International Cooperation (JBIC) will provide $300 million. Denmark’s export credit agency has also offered guarantees to support financing and equipment procurement.
According to reports, only the most favorable terms will be finalized, as the current commitments are considered more flexible than standard commercial loans. Financial closure is expected by late September or early October 2025.
To support infrastructure, RDMC has arranged $400 million in bridge financing for upgrading railway links from the mine site to Port Qasim via Main Line-2 and Main Line-3. The railway project is expected to be completed before mining operations begin, ensuring efficient transport of minerals.
Long-Term Economic Impact
Over its 37-year operational life, the Reko Diq project is projected to generate $74 billion in free cash flows, making it one of Pakistan’s most significant long-term economic ventures.
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, keeping the total project valuation at $7.48 billion. Officials have expressed confidence that costs will remain within the earlier $6.765 billion estimate through strict cost controls.
Ownership and Participation
RDMC, a special-purpose company for the project, is jointly owned by Barrick Gold Corporation (50%) and the governments of Pakistan and Balochistan (50%). Balochistan’s share includes 10% free-carried interest and 15% fully funded equity backed by federal guarantees, ensuring active provincial participation without financial risk.
International Lender Support
Global financial institutions have shown strong interest:
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International Finance Corporation (IFC): $700 million, including a $400 million subordinated loan backed only by Pakistani state-owned enterprises.
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Asian Development Bank (ADB): $300 million, marking its first mining sector investment in over four decades, along with a $110 million credit guarantee to strengthen Balochistan’s equity.
With financing in place and infrastructure development underway, the Reko Diq project is positioned as a key driver of Pakistan’s economic growth in the coming decades.
