Big Money Help to Move Reko Diq Forward
Pakistan’s reko diq gold and copper mine will get $400 million in support from the International Finance Corporation, which plans to offer this money as a special type of loan to help move the project forward. The funding aims to boost development at the site, ensuring progress in one of the country’s major mineral ventures. This financial backing reflects IFC’s interest in key infrastructure projects in Pakistan.
Following its latest financial move, the International Finance Corporation has increased its total support for the reko diq mine to $700 million, after an earlier $300 million pledge. The project is expected to cost about $6.6 billion in total. This large amount will be arranged through a mix of borrowed money and financial contributions from several partner organizations. The funding aims to support one of Pakistan’s largest mining developments.
To move the project forward, a solid financial plan has been put in place. The full cost to build the project is expected to be $6.6 billion. This amount will be raised through both loans and investor funding. The statement also mentioned that the rest of the loan money will come from other financial institutions working alongside in the deal. These combined efforts aim to fully cover the financial needs of the project. This approach is expected to keep the project running smoothly from start to finish.
Certain loans are made to handle more risk so that big projects can move forward. One example is subordinated debt, which is only repaid after other important loans have been settled. Since it takes on more of the risk, it gives other lenders a sense of security. This makes them more willing to invest in the project.
More World Banks Back Reko Diq Project
More global support is lining up to help fund the reko diq project. In April, Tim Cribb, who leads the project, shared that more international banks are expected to join the funding effort. These include banks from the U.S., Asia, Canada, and Japan. Names mentioned were the U.S. EXIM Bank, Asian Development Bank, Export Development Canada, and Japan’s JBIC. He also said that the official loan terms should be finalized around the start of the third quarter. This growing interest shows strong international confidence in the project’s future.
Earlier this year, IFC head Makhtar Diop shared that the organization is increasing its efforts in Pakistan. He said their main focus will be on key areas like infrastructure, energy, and natural resource development.
In Balochistan, there is a huge deposit of copper and gold that hasn’t been mined yet, known as reko diq. It’s considered one of the largest untapped sites of its kind in the world. The company leading the development is Barrick Gold, which owns half of the project. The rest is owned by Pakistan, with shares divided between the central government and the Balochistan province.
Mining at reko diq is likely to begin in 2028. Barrick estimates that, over the next 37 years, the site could bring in nearly $74 billion in profit after costs are covered.
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