Islamabad (TDI): The Asian Development Bank (ADB) is set to extend a $410 million financing package for the development of Pakistan’s Reko Diq copper-gold mine.
The massive deposit, among the largest undeveloped in the world, will be operated by Barrick Gold.
Officials in Islamabad view the initiative as a catalyst for attracting greater international interest in Pakistan’s mining and mineral sector, including potential investment in rare earths, according to Reuters.
The project has already drawn attention from Washington, with Pakistan offering incentives to American firms for future ventures.
Read More: $6.4B Reko Diq Deal to Be Signed Next Month
The funding arrangement includes two loans totaling $300 million for Barrick and a $110 million financing guarantee for the Government of Pakistan, the report said citing two sources, ahead of an official announcement.
Expected to begin production in 2028, the mine could generate roughly $70 billion in free cash flow over its lifetime.
The overall $6.6 billion project is structured as a partnership, with Barrick holding 50 percent and the federal and provincial governments owning the other half.
Read More: World Bank’s IFC Pledges $300M for Reko Diq
So far, about $700 million in financing has already been committed through the International Finance Corporation, part of the World Bank Group. Discussions are also underway with other prospective lenders, including the US Export-Import Bank, Export Development Canada, and Japan’s JBIC.
Project director Tim Cribb said in April that agreements with new financiers could be finalized within the current quarter.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
