ISLAMABAD: Pakistan's Reko Diq copper and gold mine project has entered a new phase with a $715 million funding boost, Pakistani state media reported on Friday.
The Reko Diq mine, located in Pakistan’s largest and poorest Balochistan province, is among the world’s biggest untapped deposits of copper and gold, with the project estimated to generate $90 billion over the next 37 years.
The project, long stalled by legal disputes and political wrangling, was revived after a 2022 settlement with Canada’s Barrick Gold. Islamabad has since touted the mine as a potential driver of growth and foreign exchange earnings.
Pakistan's Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Government Holdings Private Limited (GHPL) will now provide financing guarantees for the project through a joint corporate guarantee.
"OGDCL has approved 715 million dollars in funding for the first phase of the Reko Diq project," the Radio Pakistan broadcaster reported.
The Reko Diq Mining Company will provide a loan of $350 million to construct a new railway line, ML-3, for the project from Balochistan's Chaman to Rohri in Sindh, according to the report.
"Under the ML-3 project, Reko Diq will be connected to Port Qasim via railway track within three years," it said, adding the project will generate thousands of jobs and new business opportunities in Balochistan.
While the funding marks a breakthrough for Pakistan’s mining sector and overall economic development, the project’s location underscores the security and political challenges that have long dogged investment in the province.
Balochistan, which borders Iran and Afghanistan, has for decades faced a separatist insurgency. Armed groups have repeatedly attacked government facilities, the military, and infrastructure tied to foreign investment, including Chinese projects under the multi-billion-dollar China-Pakistan Economic Corridor. Insurgents say they are fighting for greater control over the province’s resources and for independence, while the state has described such attacks as terrorism threatening national stability.
Authorities in Islamabad view Reko Diq as a flagship investment that could transform Pakistan’s resource sector. Officials say revenues from the mine would help stabilize public finances, bolster exports, and reduce dependence on costly fuel imports, while also signaling to global investors that Pakistan remains open for business despite persistent security threats.
Canada's Barrick Gold owns a 50 percent stake in the Reko Diq mine and the Pakistan and Balochistan governments own the other 50 percent. The project is expected to start production by the end of 2028 and will produce 200,000 tons of copper per year in its first phase, with an estimated cost of $5.5 billion.
The first phase is expected to be completed by 2029, Barrick’s CEO Mark Bristow told Pakistani digital media outlet Dawn News English in January. A second phase, estimated to cost $3.5 billion, will double production, he added.
The mine is estimated to have reserves lasting 37 years but Bristow said that through upgrades and expansions it could potentially be mined for much longer.
