Asian Development Bank Commits $410m to Barrick’s Reko Diq Copper Mine in Pakistan
ADB Backs Reko Diq Copper Project with $410m Financing Package
The Asian Development Bank (ADB) will provide a $410 million financing package to support the development of Reko Diq, one of the world’s largest untapped copper deposits, operated by Barrick Mining (NYSE: GOLD; TSX: ABX).
According to Reuters, the package includes two loans totaling $300 million to Barrick and a $110 million financing guarantee for the government of Pakistan.
The investment is part of a broader $6.6 billion development plan for the mine, which is jointly owned by Barrick (50%), the government of Pakistan, and the provincial government of Balochistan.
Shares of Barrick rose 0.6% on Thursday morning, valuing the company at $42.9 billion.
Reko Diq’s Potential
Reko Diq is projected to generate about $70 billion in free cash flow and more than $90 billion in operating cash flow over its lifetime.
Production start: Expected in 2028
Phase 1 output: 200,000 tonnes of copper per year
Phase 2 expansion: 400,000 tonnes annually
A recent feasibility update increased Phase 1 throughput from 40 to 45 million tonnes per year, raising costs to $5.6 billion from earlier estimates of $4 billion. Phase 2 throughput is planned at 90 million tonnes per year, up from 80 million.
The mine currently has a projected operating life of 37 years, though Barrick anticipates that upgrades and further exploration could extend operations well beyond that.
The ADB’s participation follows a $700 million package from the International Finance Corporation (IFC), the World Bank’s private investment arm.
Additional financing discussions are ongoing with the US Export-Import Bank, Export Development Canada, and Japan’s JBIC, with term sheets expected later this quarter.
The financing push reflects Islamabad’s strategy to attract foreign investment in its mining sector, particularly in critical minerals. It also comes amid warming ties with Washington.
US Secretary of State Marco Rubio recently identified critical minerals as a new area of cooperation with Pakistan, including potential joint ventures.
Pakistan’s commerce ministry has indicated that US firms will be offered lease concessions and JV opportunities in Balochistan.
For Pakistan, Reko Diq is not just a mining project but a catalyst for broader investment in resource-rich Balochistan.
For the US and its allies, involvement in the mine strengthens efforts to diversify critical mineral supply chains away from China.
After years of delays caused by legal disputes—finally resolved in 2022—the project is now firmly moving ahead.
