Reko Diq Mining Project Secures $5.5 Billion Financing, US EXIM Pledges $1 Billion
ISLAMABAD: In a major boost for Pakistan’s mining sector, the Reko Diq Mining Company (RDMC) has secured over $5.5 billion in financing commitments from international financial institutions (IFIs), exceeding its funding requirement of $3.74 billion.
The $7.48 billion project in Balochistan’s Chagai district is being developed under a 50:50 debt-to-equity model. Construction is set to begin in December 2025, with commercial operations targeted for 2028.
Key Financing Commitments
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US Export-Import Bank (EXIM): $1 billion
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Japan Bank for International Cooperation (JBIC): $300 million
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Denmark’s Export Credit Agency: Guarantees for bank financing and equipment procurement
Officials confirmed that only the most favorable loan terms will be selected from the $5.5 billion in commitments, offering more lenient conditions than standard commercial loans. Financial closure is expected by late September or early October 2025.
RDMC has also pledged $400 million in bridge financing to support the construction of railway infrastructure linking the mine to Port Qasim via Main Line-2 and Main Line-3. Timely completion of these rail links is critical for efficient mineral transport and is expected before operations begin in 2028.
Project Impact
The Reko Diq project is projected to generate $74 billion in free cash flows over its 37-year operational life, positioning it as a cornerstone of Pakistan’s long-term economic growth strategy.
State-owned entities including OGDCL, PPL, and GHPL have approved $715 million in project costs, bringing the total project valuation to $7.48 billion. Officials, however, remain confident of executing the project within the original $6.765 billion budget, thanks to tight cost controls and operational efficiencies.
Ownership and Partnerships
RDMC is a special-purpose vehicle formed to execute the project, with Barrick Gold Corporation owning 50% and the governments of Pakistan and Balochistan holding the remaining 50%. Balochistan’s share includes a 10% free-carried interest and a 15% fully funded stake guaranteed by the federal government, ensuring participation without financial liability while benefiting from future revenues.
International Support
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International Finance Corporation (IFC): $700 million commitment, including $400 million subordinated loan without sovereign guarantees
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Asian Development Bank (ADB): $300 million financing plus a $110 million credit guarantee for the Government of Balochistan
“This isn’t just a mining project — it’s a transformational economic engine for Pakistan,” said a senior official. Reko Diq is set to redefine large-scale resource development, combining financial innovation with socio-economic impact.
Once financial closure is achieved, RDMC will begin contractor mobilization, equipment procurement, and site development, marking one of Pakistan’s most promising public-private partnerships to date.
