The highly anticipated Reko Diq mining project is on the verge of achieving financial closure, with Pakistan’s Finance Minister Muhammad Aurangzeb confirming that key international partners are finalizing their commitments. In an interview with Arab News, Aurangzeb highlighted that the International Finance Corporation (IFC) has been leading the consortium, and the participation of US Exim Bank is expected soon following the resolution of prior operational delays in the United States.
“The financial closure for Reko Diq is essentially around the corner,” Aurangzeb said, emphasizing that all major debt arrangements, totaling approximately $3.5 billion, are now in place. The minister noted that the project has been a focal point of recent discussions during his visits to Washington, including meetings with the IFC Managing Director and other consortium partners.
Reko Diq, located in Balochistan, Pakistan, is one of the world’s largest undeveloped copper and gold deposits. The project ownership is divided among Barrick, which holds 50%, three federal state-owned enterprises with a combined 25%, and the Government of Balochistan, which holds 25%—15% on a fully funded basis and 10% on a free carried basis. The mine is projected to begin production by 2028 and is expected to emerge as a world-class operation, substantially contributing to Pakistan’s economic growth and export revenues.
Aurangzeb underscored the transformative potential of the project, calling it a “game-changer” for Pakistan’s economy. He noted that the country’s current export base hovers around $30 billion, and Reko Diq alone is anticipated to add approximately $2.8 billion in its first year of operation—roughly 10% of the existing export base. The minister also highlighted the project as part of a broader strategy to develop Pakistan’s mineral and mining sector, with several additional projects poised to follow in the coming years.
The Senate Standing Committee on Petroleum recently reviewed the progress of the Reko Diq project, where the Secretary of the Petroleum Ministry stated that around 20% of groundwork has already been completed. The Secretary reaffirmed that the project is on track to commence production by the end of 2028. However, the Chair of the Committee raised concerns regarding the absence of a Barrick representative and instructed that an operational team member should be present in future meetings to ensure proper oversight and coordination.
The finalization of financial closure is expected to unlock critical funding and operational milestones, facilitating infrastructure development, workforce mobilization, and early-stage preparatory activities. Once operational, Reko Diq will not only contribute substantially to export revenues but also create jobs, stimulate regional development in Balochistan, and reinforce Pakistan’s position in the global mining sector.
With major international financiers and strategic partners aligning, the project is poised to become a cornerstone of Pakistan’s mineral development strategy. The anticipated closure of financing arrangements is likely to signal a decisive step forward in translating decades of planning into tangible economic outcomes.
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