Islamabad (TDI): The World Bank’s private investment arm, International Finance Corporation (IFC), will provide $300 million in debt financing for the Reko Diq copper-gold mining project.
Barrick Gold’s copper and gold project intends to lock in upwards of $2 billion in financing from global lenders, with term sheets signed by early Q3, Reuters reported.
The funding will support the development of the Reko Diq mine, one of the largest underdeveloped copper-gold deposits in the world, which is hoped to generate $70 billion in free cash flow and $90 billion in operating cash flow.
The financing for phase one of the project, which is anticipated to start production in 2028, is being discussed with multiple lenders.
Read More: Reko Diq Set to Secure $2B+ in Global Funding
Reko Diq’s Project Director Tim Cribb said that the mine was looking at $650 million from the IFC and International Development Association.
Cribb said that the mine was also in discussions with the US Export-Import Bank for $500 million to $1billion in financing, as well as $500 million from development finance institutions, including the Asian Development Bank, Export Development Canada and Japan Bank for International Cooperation.
Cribb said that railway financing discussions were underway with the IFC and other lenders, with infrastructure costs estimated at $500-800 million, with roughly $350 million as the initial cost.
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The World Bank plans to invest $2 billion annually in Pakistan’s infrastructure over the next decade.
The lenders are likely to secure offtake deals with potential clients, including nations in Asia such as Japan and South Korea, as well as European countries like Sweden and Germany, which are looking to secure copper supplies for their industries, Cribb said.
