Pakistan: Unlocking billions with Reko Diq copper and gold reserves

Dubai: Pakistan’s landmark Reko Diq copper-gold mine has secured a $410 million financing package from the Asian Development Bank (ADB), giving fresh momentum to one of the world’s largest untapped mineral projects.

The investment is expected to accelerate the development of the multi-billion-dollar venture, boost Pakistan’s economy, and attract more global investors to the country’s growing mineral sector.

The Reko Diq project, situated in Balochistan’s mineral-rich Tethyan belt, is a $6.6 billion mining development jointly owned by Canadian mining giant Barrick Gold (50%), the Government of Pakistan (25%), and the Government of Balochistan (25%).

ADB’s financing package includes $300 million in loans to Barrick and a $110 million partial credit guarantee covering the equity contribution of Balochistan’s provincial government.

ADB President Masato Kanda described the project as a “game-changer” for Pakistan, highlighting that it will support critical mineral supply chains, clean energy transition, and digital transformation across the region. He added that the project will also create high-quality jobs and drive Pakistan towards a more resilient and diversified economy.

When completed, Reko Diq will be among the top five copper mines in the world, producing on average 800,000 tonnes of copper concentrate annually in its first phase, with expansion plans to double capacity by 2034.

The mine holds an estimated 15 million tonnes of copper reserves and 26 million ounces of gold, according to the latest feasibility study. Over its projected 37-year life, the project is expected to generate more than $70—74 billion in free cash flow, making it one of the largest foreign direct investments (FDIs) in Pakistan’s history.

Copper, a critical mineral for renewable energy, electric vehicles, batteries, smartphones, and data centres, is in high demand worldwide. With global copper shortages looming, Reko Diq is poised to play a key role in supplying international markets.

Islamabad hopes the Reko Diq project will serve as a catalyst for foreign investment in Pakistan’s mineral sector, including rare earth exploration. The government has already drawn interest from the Trump administration in the US, with potential concessions for American companies.

Beyond ADB, financing discussions are underway with the International Finance Corporation (IFC), US Export-Import Bank, Export Development Canada, and Japan’s JBIC. Saudi Arabia’s Manara Minerals is also in talks to acquire a 10—20% stake valued between $500 million and $1 billion, further strengthening strategic investment ties.

The Reko Diq mine is set to become a major employment hub, with the workforce peaking at around 7,500 during construction and stabilising at 4,000 skilled workers during operations. Barrick Gold has launched training and social development programs to prepare local communities for long-term employment opportunities.

In addition, the project is expected to bring infrastructure upgrades, healthcare, and education facilities to Balochistan, ensuring that local communities directly benefit from the mine’s development.

The Reko Diq copper-gold mine represents a turning point for Pakistan’s economy, promising vast revenues, global investment, and sustainable job creation. With ADB’s $410 million backing and growing international interest, the project is not just a mining venture but a strategic resource hub for the global clean energy and digital economy.

With inputs from Reuters