The Asian Development Bank has sanctioned a $410 million package to develop Pakistan’s Reko Diq copper and gold mine, attracting foreign interest despite human rights concerns.
This potentially highly profitable open-pit venture in Pakistan’s Balochistan aims to tap into one of the world’s largest undeveloped copper and gold deposits, with production slated for 2028.
The ADB’s package comprises $300 million in loans to the Canadian company Barrick and a $110 million credit guarantee for the local government.
Upon completion, Reko Diq is anticipated to rank as the fifth-largest copper mine globally, a crucial metal for electrical wiring, motors, and renewable energy technologies.
“Reko Diq will bolster the critical minerals supply chain, supporting the clean energy transition and fostering digital innovation,” stated ADB President Masato Kanda.
Kanda described the package as “transformative for Pakistan, supporting the country’s shift towards a more robust and diversified economy.”
Barrick defended its mining practices in a statement to AFP.
“Barrick is dedicated to responsible mining and sharing the benefits with local stakeholders and partners through open and transparent engagement, adhering to the highest environmental and social standards,” it stated.
According to Dawn, the current market prices of $3,016 per ounce of gold and $9,815 per tonne of copper suggest a total yield exceeding $60 billion, comprising $54 billion in gold and $6 billion in copper.
The updated feasibility study plans to process 45 million tonnes of mill feed annually in Phase 1 starting 2028, up from previous estimates of 40 million tonnes. By 2034, Phase 2 aims to double this capacity to 90 million tonnes per annum, according to OGDCL.
The study outlines a 37-year mine life, divided into two phases. Phase 1 requires an estimated capital investment of $5.6 billion, excluding financing costs and inflation, and is set to begin operations in 2028.
A limited-recourse project financing facility up to $3 billion is being pursued, with the balance to be funded by shareholder contributions, OGDCL mentioned.
Recently, Pakistan’s military chief emphasized the country’s potential as a hub for minerals and rare earths, promoting them during trade tariff negotiations with the US under President Donald Trump.
Pakistani officials have long positioned the Reko Diq project as central to the country’s economic revival plan.
Despite its promise, the mine’s progress has been hindered by legal battles, bureaucratic hurdles, and conflicts among federal and provincial authorities. — With inputs from Dawn
