The Asian Development Bank (ADB) has pledged a $410 million financing package to support the development of Pakistan’s Reko Diq copper-gold mine, one of the world’s largest undeveloped mineral deposits. The project, operated by Barrick Gold, is expected to be a significant boost to Pakistan’s economy.

The financing package includes $300 million in loans directly to Barrick Gold and an additional $110 million partial credit guarantee for the Balochistan government’s equity contribution. This investment is part of a larger $6.6 billion project, with Barrick holding a 50% stake and the remaining share owned by the federal and provincial governments.

ADB President Masato Kanda highlighted the project’s importance for both regional and global supply chains, stating that it will contribute to the clean energy transition and drive digital innovation. He also emphasized the economic benefits for Pakistan, including job creation and economic diversification.

The Reko Diq mine is projected to commence production in 2028, generating an estimated $70 billion in free cash flow over its lifespan. In its initial phase, it will produce 800,000 tonnes of copper concentrate annually, playing a crucial role in meeting the global demand for copper, a critical mineral for renewable energy technologies and digital infrastructure.

Pakistan hopes that the Reko Diq project will attract further foreign investment in its mineral sector, particularly in the exploration of rare earth deposits. The government has already engaged with the US government, offering concessions to American companies. The project has secured previous funding commitments, including $700 million from the International Finance Corporation, and is in discussions with other potential financiers, such as the US Export-Import Bank and others. The project’s developers expect to finalize further financing agreements this quarter.

The Reko Diq project overcame years of legal delays, with a final settlement reached in 2022. Upon completion, it is anticipated to become one of the world’s five largest copper mines. Barrick Gold anticipates the mine’s operational lifespan could extend beyond 37 years with upgrades and further exploration.