The United States has allocated $1.3 billion in financing for Pakistan’s Reko Diq copper and gold mining project in Balochistan, marking a significant step in developing one of the country’s largest mineral ventures. The funding, approved under the US Export-Import Bank’s critical minerals financing framework, is aimed at supporting the extraction and processing of raw materials vital to global supply chains, highlighting Pakistan’s emerging role in international mineral production.
The $1.3 billion allocation represents a substantial portion of the total $3.2 billion investment required for Reko Diq, which is being developed in partnership with a Canadian mining firm. Construction activities at the site are already underway, and commercial production is targeted to begin in 2028. Analysts note that this funding provides critical momentum for Pakistan’s mining sector, which, despite its rich mineral endowment, contributes just over 3% to the country’s GDP and remains underdeveloped relative to its potential.
This allocation is part of Project Vault, a $10 billion US financing program designed to strengthen supply security and create strategic reserves of critical minerals. The initiative is part of broader global efforts to ensure access to essential materials for manufacturing, energy, and technology sectors. The Exim Bank’s critical minerals portfolio also includes funding for multiple projects across the United States, such as advanced metal powder production in Pennsylvania, critical metals processing in Tennessee, zinc mining in New York, and titanium processing in Virginia.
Over the past year, the US Exim Bank has issued Letters of Interest totaling $14.8 billion for critical mineral projects worldwide. These commitments span rare-earth processing and lithium extraction in the United States, cobalt and nickel production in Australia, and tin mining operations in the United Kingdom and Australia. The US Department of Energy has complemented these efforts through its Loan Programs Office, supporting large-scale mineral and battery supply-chain projects with multi-billion-dollar loans and conditional commitments for lithium, graphite, potash, and battery recycling initiatives.
Pakistan’s mineral potential is vast, with an estimated 600,000 square kilometres of mineral outcrop area hosting 92 known minerals, 52 of which are commercially exploited. The sector supports over 5,000 mines, around 50,000 small and medium enterprises, and provides direct employment for approximately 300,000 workers. Despite this, mineral exports currently account for only 0.1% of global trade, reflecting the untapped potential of the country’s resources.
Industry experts note that the Reko Diq project could act as a catalyst for further foreign investment in Pakistan’s mining sector, attracting technology, infrastructure development, and strategic partnerships. By leveraging the US Exim Bank’s financing and integrating into global critical mineral supply chains, Pakistan can enhance production capabilities, improve export potential, and generate economic growth.
The Reko Diq initiative underscores the strategic importance of critical minerals in shaping future global trade and industrial supply chains. With production slated for 2028, the project is expected to significantly boost Pakistan’s mining output, generate employment opportunities, and strengthen the country’s position as a key player in the international mineral market.
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