Pakistan eyes economic lift with Reko Diq mining project

Pakistan’s economy is on the verge of a significant boost as the long-stalled Reko Diq gold and copper project moves closer to full-scale development.

The $7.7 billion project, rich in untapped mineral wealth, has reached a critical milestone with half of the required $3.5 billion debt now officially lined up, signaling strong international confidence in the country’s mineral resources.

In the latest episode of On My Radar, Kamran Khan highlighted the unprecedented progress, noting that the U.S. Export-Import Bank (US EXIM) has approved $1.25 billion in funding for the project.

He added that financial closure, a key milestone for the initiative, is expected within the first two weeks of December, potentially ahead of the Reko Diq Mining Company (RDMC) board meeting on December 9, where final approval may also be granted.

According to the project’s feasibility report, Reko Diq contains 17.9 million ounces of gold and 13.1 million metric tons of copper. Based on current international market rates - $4,100 per ounce for gold and $10,978 per metric ton for copper - these reserves are valued at approximately $216 billion.

Of this, gold alone accounts for $73 billion and copper $143 billion. This is not speculation but a solid estimate based on prevailing market prices. The timing of development is crucial, as global gold and copper prices are rising rapidly, enhancing the future economic value of the project and offering substantial benefits to Pakistan’s economy over the next four to five years.

The ownership structure of Reko Diq is strategically balanced: Barrick Gold Corporation holds a 50% stake and operates the project, the Government of Pakistan owns 25% through OGDCL, PPL, and Government Holdings Private Limited (GHPL), and the Government of Balochistan holds the remaining 25%.

Beyond Reko Diq, other districts in Balochistan and Khyber Pakhtunkhwa, particularly the Chagai Belt, are rich in mineral deposits, with ongoing mining activities and opportunities for local and international partnerships.

The formal lining up of half the $3.5 billion debt from international financial institutions underscores global confidence in Pakistan’s mineral potential.

Kamran Khan emphasized that the $1.25 billion approval from the US EXIM Bank is not just a financial milestone but also a testament to the diplomatic and strategic efforts of Pakistan’s civil and military leadership.