Pakistan advances Reko Diq mining project with key approvals

Pakistan has approved key financial and legal agreements related to the multibillion-dollar Reko Diq copper and gold mining project, signaling a major step forward in one of the country’s most significant resource development initiatives.

The Economic Coordination Committee (ECC) of Pakistan’s Cabinet on Thursday cleared several proposals submitted by the Petroleum Division and the Ministry of Railways. The approvals are expected to accelerate the extraction of minerals from Reko Diq in Balochistan, one of the world’s largest undeveloped copper-gold reserves.

The meeting, held at the Finance Division and chaired by Finance Minister Muhammad Aurangzeb, approved the final terms of definitive agreements related to project financing, according to an official statement.

The committee has instructed officials to seek its approval for any material deviations identified by the project’s legal and financial consultants and certified by the Reko Diq Mining Company.

The proposal submitted by the Ministry of Railways included a rail development and a bridge financing agreement with the Reko Diq Mining Company. The proposed financing — valued at $390 million — will be used to construct a 1,350-kilometer railway line for transporting export materials from the Reko Diq site.

The ECC approved the proposal and directed the Ministry of Railways to share both agreements with the Finance Division for financial appraisal. It also asked the Ministries of Railways and Finance to submit an update on the execution and implementation of the project by March 2026.

“This approval demonstrates the government’s firm commitment to moving forward with this landmark project,” Aurangzeb said during the meeting. “The Reko Diq Project will not only unlock one of the world’s largest undeveloped copper-gold deposits, but also catalyze job creation, infrastructure development, and long-term socio-economic uplift across the region.”

The meeting was attended by Federal Minister for Petroleum Ali Pervaiz Malik, Minister for National Food Security and Research Rana Tanveer Hussain, Minister for Board of Investment Qaiser Ahmed Sheikh, as well as senior officials from relevant ministries, departments, and regulatory bodies.

The Reko Diq Project, a joint venture involving international stakeholders and the Government of Pakistan, has faced legal and commercial hurdles in recent years. However, recent agreements and court rulings have paved the way for its revival, with the government positioning it as a cornerstone of its strategy for economic growth and resource development.

The development work on the project has picked up pace in recent months, with the Asian Development Bank holding talks to finance a $2 billion upgrade of a 500-km stretch of the railway line from Karachi to Rohri in the country's south, Reuters reported while quoting two sources.

The upgrade has become urgent, the sources said, as it is needed to transport copper ore from the Reko Diq mine currently being developed by Canada's Barrick Mining Corp.