A Turning Point for Pakistan’s Mining Ambitions
ISLAMABAD: Pakistan’s flagship copper and gold mining project at Reko Diq has secured a major portion of its debt financing. Officials confirmed that international lenders have stepped in with billions of dollars, marking a significant boost for the $7.7 billion venture. According to Geo Tv, the United States Export Import Bank has approved a facility worth 1.25 billion dollars, giving the project fresh momentum.
Why the Financing Matters
Securing half of the required 3.5 billion dollars in debt financing reflects growing confidence in Pakistan’s mining sector. Canada’s Export Development Canada will co finance the venture alongside the US EXIM Bank, bringing their combined support to 1.4 billion dollars. Their involvement also ties the project to international supply chains and long term obligations.
The Global Web of Lenders
Multilateral institutions have pledged substantial contributions. The International Finance Corporation has committed 700 million dollars, while the Asian Development Bank has added 300 million dollars. Japan’s JBIC is preparing close to 300 million dollars in import financing. European agencies including Germany’s Euler Hermes and KfW along with Sweden’s EKN will jointly provide 900 million dollars in long term financing linked to copper and gold off take agreements. Together these contributions represent nearly one third of the financing package.
Risks Hidden in the Fine Print
Officials said interest rate negotiations are still underway, with terms varying across lender categories. In case of disputes, agreements designate the London Court of International Arbitration under English law as the binding forum. This arrangement raises questions about sovereignty but is seen as necessary to attract global capital.
Construction Progress and Local Stakes
Heavy machinery has already been mobilised at the site and contractors are accelerating development. The financing blueprint follows a 50 to 50 debt to equity ratio, balancing risk between domestic and international partners. RDMC is jointly owned by Barrick Gold Corporation with a 50 percent stake, the Government of Pakistan with 25 percent through OGDCL, PPL, and GHPL, and the Government of Balochistan with 25 percent including a 10 percent free carried interest. This ensures Balochistan benefits from project revenues without bearing upfront financial obligations.
Infrastructure Promises and Long Term Vision
RDMC has pledged 390 million dollars in bridge financing to upgrade Pakistan Railways Main Line 2 and Main Line 3. These upgrades will connect the mine to Port Qasim, ensuring smooth export of processed copper and gold once production begins in 2028.