ADB Approves Record Financing for Pakistan’s Reko Diq Copper-Gold Mine

The Asian Development Bank (ADB) has approved a landmark financing package for the Reko Diq copper-gold mine in Pakistan’s Balochistan province, marking a pivotal step in both global critical mineral supply chains and Pakistan’s economic development. The project is expected to deliver transformative benefits for the region, driving inclusive growth, creating jobs, and supporting Pakistan’s transition to a more diversified and resilient economy.

A Critical Mineral for a Changing World

Copper is increasingly recognized as one of the world’s most essential minerals for the clean energy transition and digital transformation. Its applications span renewable energy systems, electric vehicles, batteries, smartphones, data centers, and other infrastructure needed for a low-carbon global economy.

Reko Diq, when fully developed, will be the fifth largest copper mine in the world. Phase one alone is projected to produce an average of 800,000 tons of copper concentrate per year, directly addressing the anticipated global shortfall in copper supply. This contribution is vital to meet surging demand, as the energy and digital sectors expand worldwide.

Financing Package: Largest FDI in Pakistan’s History

ADB’s support for the project is part of a broader financing package involving multiple international partners. The bank’s contribution consists of:

• Up to $300 million in senior loans to the Reko Diq Mining Company Private Limited (RDMC).

• $110 million partial credit guarantee to cover the equity component of the Government of Balochistan.

This financing structure is designed to derisk the investment, thereby unlocking greater private capital inflows. Collectively, the Reko Diq initiative represents the largest foreign direct investment (FDI) in Pakistan’s history, a milestone that could redefine the country’s investment climate.

“Reko Diq will help the critical minerals supply chain, while advancing the clean energy transition and driving digital innovation across the region and beyond,” said ADB President Masato Kanda. He further emphasized the mine’s potential to create “quality jobs and underpin Pakistan’s transition toward a more resilient and diversified economy.”

Regional and Social Impact

Situated in the Chagai district of Balochistan—Pakistan’s most underserved province—the mine is expected to create thousands of jobs and stimulate broader regional economic growth. Beyond direct employment, the project will invest in healthcare, education, and social development programs, including initiatives designed specifically to empower women in local communities.

The social benefits are expected to ripple outward, improving infrastructure and services in one of the least developed regions of the country.

Equitable Benefit-Sharing Through a Joint Venture

The ownership structure of RDMC has been designed to ensure equitable sharing of benefits:

• 50% – Barrick Mining Corporation (builder and operator of the mine)

• 25% – Government of Balochistan, via Balochistan Mineral Reserve Limited

• 25% – Three federal state-owned enterprises

This structure ensures that both the provincial and federal governments directly benefit from revenues, alongside the private sector partner.

Timeline and Standards

Work at the Reko Diq site began this year, with the project covering the development of an open-pit mine and a modern processing plant. Production of copper concentrate is expected to commence in late 2028, and the mine is projected to operate for at least 37 years.

Importantly, the development is being carried out in line with stringent environmental, social, and governance (ESG) standards, including detailed due diligence and impact assessments overseen by ADB.

Strategic Importance for ADB and Pakistan

Reko Diq is the first mining project supported by ADB under its Critical Minerals-to-Manufacturing Value Chains approach, which aims to help Asia-Pacific nations harness the rising demand for materials crucial to clean energy and advanced technologies.

For Pakistan, the project offers more than just mineral wealth. It signals a turning point in foreign investment confidence, helps diversify an economy long reliant on textiles and agriculture, and sets the stage for sustainable industrial development.

A Longstanding Partnership

Pakistan has been a founding member of ADB since 1966. Over nearly six decades, the bank has committed more than $43 billion to the country, spanning infrastructure, energy, transport, agriculture, and social sectors. The Reko Diq mine now stands as one of the most ambitious undertakings in this partnership, potentially redefining Pakistan’s development trajectory.

Looking Ahead

As global demand for copper and other critical minerals accelerates, Reko Diq is poised to become a linchpin in the international supply chain while driving inclusive development in Pakistan. The ADB’s involvement not only secures financing but also ensures the project upholds the highest environmental and social standards, making it a model for sustainable mining in the region.

The final loan documentation and agreements are expected to be signed soon, formally committing the financing and paving the way for one of the most significant mining projects in the world today.