Pakistan is poised to reach financial close for the $3.5 billion Reko Diq copper and gold mining project within the next two weeks, according to officials familiar with the process. Lenders have completed their financing arrangements and moved to the documentation stage, marking a significant step forward in one of the country’s largest strategic mineral projects. Federal Petroleum Minister Ali Pervaiz Malik and Oil and Gas Development Company (OGDC) Managing Director Ahmed Hayat Lak were briefed by a legal adviser representing the lenders that preparations for financial close are nearly complete.
The update came during a meeting involving the petroleum minister, OGDC management, and Munib Hussain, a London-based partner at international law firm Milbank, which represents the project’s financiers. Officials discussed the Reko Diq project alongside broader developments in Pakistan’s mining and oil and gas sectors, emphasizing support for strategic investments and sectoral growth initiatives. With lenders finalizing arrangements, the country expects the financial close process to be completed within the coming fortnight, paving the way for formal project execution.
Pakistan has devised dual execution plans for the project. Under Plan A, funding from lenders will secure the project’s operational and construction requirements, while Plan B ensures continued operational activity regardless of financial close timing. Machinery has already been deployed at the site, and construction work has commenced, demonstrating progress on the ground. The official signing ceremony for Reko Diq is scheduled for January, signaling the next phase in one of the world’s largest undeveloped copper and gold mines.
Located in Chagai district of Balochistan, Reko Diq contains one of the largest untapped copper and gold deposits globally. Operated by Canada’s Barrick Gold, the mine is expected to begin production in 2028 with an initial investment of $5.5 billion. Barrick CEO Mark Bristow has indicated the project could generate $74 billion in free cash flow over 37 years, with annual exports projected to reach $2.8 billion. The initiative is also expected to create thousands of direct and indirect jobs, with a planned second phase set to expand copper output to 400,000 tonnes and gold production to 500,000 ounces per year.
Pakistan’s mineral sector currently contributes roughly 3.2 percent to GDP, with mineral exports accounting for just 0.1 percent of global trade. Despite the sector’s resource potential, Pakistan spans an outcrop area of 600,000 square kilometers and has 92 identified minerals, of which 52 are commercially exploited. The sector supports more than 5,000 mines, 50,000 small and medium enterprises, and provides employment to nearly 300,000 people. With Reko Diq’s financial close imminent, the project is expected to become a cornerstone of Pakistan’s mineral sector, boosting exports, investment confidence, and long-term economic growth.
The project reflects Pakistan’s growing emphasis on leveraging mineral resources to strengthen the economy and attract international investment. Successful financial close and operational commencement are anticipated to enhance infrastructure development, create employment opportunities, and solidify the country’s position in the global mining market.
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