Islamabad: Barrick Gold Corp. is set to advance its ambitious plans for the Reko Diq copper and gold project in Pakistan, with a USD 3 billion funding package expected to be signed in the third quarter of this year. The project, one of the world’s largest untapped copper-gold deposits, is a joint venture between Barrick Gold, the governments of Pakistan, and Balochistan.
In an interview with Bloomberg, Barrick CEO Mark Bristow confirmed that financing for the project is being led by the World Bank’s International Finance Corporation (IFC), with participation from international state funding agencies including those from the United States, Germany, Japan, and other countries. Bristow said the company anticipates drawing down about USD 500 million by the fourth quarter of this year to kickstart the development phase.
The Reko Diq project, located in Balochistan, Pakistan, is poised to become a significant contributor to the global copper and gold supply chains. Tim Cribb, Barrick’s Project Director for Pakistan, revealed that the company plans to secure upwards of USD 2 billion in financing from international lenders, with term sheets expected to be finalized by early Q3. The financing will be used to support the development of phase one of the mine, which is slated to begin production in 2028.
The project’s initial phase is expected to cost USD 5.6 billion, a revision from the earlier USD 4 billion estimate, as the feasibility study has upgraded the project’s scope. The throughput for phase one has increased from 40 million tons per annum to 45 million, while the second phase will expand capacity to 90 million tons per annum, up from 80 million. Despite a reduction in the mine’s projected lifespan from 42 to 37 years, Barrick believes the discovery of additional minerals could extend the mine’s operational life to 80 years.
Barrick Gold is also in talks with several international financial institutions for further support, including the U.S. Export-Import Bank, which could provide between USD 500 million and USD 1 billion, and development finance institutions like the Asian Development Bank and Export Development Canada. Additionally, the company is working on securing infrastructure financing for the development of railway systems, with costs estimated between USD 500 million and USD 800 million.
The financing discussions are progressing rapidly, with Barrick aiming to close term sheets by late Q2 or early Q3. The company has already signed a memorandum of understanding with Pakistan’s Mari Energies Ltd., covering two mineral properties adjacent to Reko Diq, indicating potential for further exploration in the region.
The development of Reko Diq is expected to significantly boost Pakistan’s mining sector, attracting foreign direct investment and creating thousands of jobs. The project’s vast potential to reshape global copper supply chains and its ability to generate substantial cash flows, estimated at USD 70 billion in free cash flow and USD 90 billion in operating cash flow, positions Reko Diq as a critical asset for both Pakistan and the global mining industry.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
