Islamabad: The Economic Coordination Committee (ECC) has approved an upward revision of USD 500 million in the cost of the Reko Diq project, increasing its total valuation from USD 6.2 billion to USD 6.7 billion. This development comes as Oil and Gas Development Company Limited (OGDCL) confirms an investment of USD 627 million and finalizes an updated feasibility study for the multibillion-dollar copper-gold mining project.
The ECC meeting, chaired virtually by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, was attended by key officials, including Petroleum Minister Ali Parvez Malik, Commerce Minister Jam Kamal Khan, and Board of Investment Minister Qaiser Ahmed Sheikh. While the Ministry of Finance confirmed the revised valuation, it did not disclose specific reasons for the increase.
The valuation update is expected to facilitate Saudi Arabia’s potential acquisition of a stake in the project, with negotiations ongoing. The sale of federal government shares to the Kingdom could be finalized within the current fiscal year 2024-25, though no formal agreement has been signed yet.
Project Expansion & Timeline According to OGDCL, the first phase of the Reko Diq project is scheduled to begin in 2028, followed by the second phase in 2034. The feasibility study confirms that the project will yield approximately 13.1 million tonnes of copper and 17.9 million ounces of gold over its 37-year lifespan. The first phase will require an initial investment of over USD 5.5 billion, supporting a processing capacity of 45 million tonnes, which will double to 90 million tonnes once the second phase begins.
The project is being developed as a joint venture with Canada’s Barrick Gold Corporation, which holds a 50% stake. The remaining ownership is divided among Pakistani government entities, with OGDCL, Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited (GHPL) collectively holding 25%, while the Balochistan government retains the remaining 25%.
OGDCL’s Managing Director Ahmed Hayat Lak called the updated feasibility study a significant milestone, emphasizing the company’s commitment to collaborating with global mining firms to ensure the project’s success.
Infrastructure & Investment Adjustments The cost revision approved by the ECC accounts for inflation, an expanded project scope, and additional infrastructure requirements, including alternative water supply solutions and advanced processing plants. The committee reaffirmed its full support for the project and directed the Ministries of Petroleum and Finance to ensure smooth execution.
In a related decision, the ECC also approved a supplementary grant of Rs 200 million for the development of the Pakistan Sports Board (PSB) Coaching Centre in Skardu, emphasizing its role in providing sports and high-altitude training facilities.
Reko Diq, one of the world’s largest untapped copper-gold reserves, is seen as a game-changer for Pakistan’s mining sector. With strategic foreign investment interest and a revised development framework, the project is expected to significantly boost the country’s economic prospects in the coming decades.
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