The Asian Development Bank (ADB) approved a $410 million financing package to help develop Pakistan’s Reko Diq copper mine, one of the world’s largest untapped deposits, which will be operated by Barrick Gold.
The project will help meet rising global demand for critical minerals and unlock transformative economic development and poverty reduction in the nation, read a statement on Friday.
“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.
“ADB’s support is also a game-changer for Pakistan, creating quality jobs and underpinning the nation’s transition toward a more resilient and diversified economy.”
ADB is one of several agencies funding the first phase of Reko Diq, with a financing package which should help unlock greater private capital by derisking this investment.
“ADB’s contribution consists of up to $300 million in senior loans to the Reko Diq Mining Company Private Limited (RDMC), which owns the mine, and a $110 million partial credit guarantee to cover the equity component of the Government of Balochistan.
“Financing for the project will be the largest foreign direct investment in Pakistan’s history,” read the statement.
When fully complete, Reko Diq is expected to be the world’s fifth-largest copper mine.
ADB to provide $410 million package for Barrick-run Pakistan mine, sources say
In the first phase, the mine will produce on average 800,000 tons of copper concentrate per annum and play a key role in addressing the projected global copper shortfall.
Copper, a critical mineral for energy transition and digital transformation, is essential to the global production of renewable energy technologies, electric vehicles, batteries, smartphones, and data centres.
Located in the Chagai district of Balochistan—Pakistan’s least developed province—the Reko Diq copper-gold mine is expected to have a significant impact on the economy.
RDMC is a joint venture designed to ensure equitable benefit-sharing. Barrick Mining Corporation, which will build and operate the mine, owns 50% of RDMC; the Government of Balochistan (through Balochistan Mineral Reserve Limited) owns 25%; and three federal state-owned enterprises together own 25%.
ADB said that Reko Diq is the first mining project supported by the multilateral lender under its new Critical Minerals-to-Manufacturing Value Chains approach, designed to help Asia and the Pacific capitalise on rising demand for materials essential to clean energy and digital technologies.
The approval by ADB’s Board of Directors authorises ADB to proceed with finalising the loan documentation and other requirements before the financing can be formally committed through signed agreements at a later date.
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