ADB approves $410 million financing for Reko Diq

ISLAMABAD: The Asian Development Bank (ADB) on Friday approved a $410 million financing package for Pakistan’s Reko Diq project, calling it the largest foreign financing in the country’s history.

The financing includes two loans totaling $300 million to Barrick Gold, which operates the mine, along with a $110 million guarantee for the Government of Pakistan.

The project , one of the world’s largest untapped copper and gold deposits, located in Balochistan, is expected to begin production in late 2028 and generate about $70 billion in free cash flow over its estimated 37-year lifespan.

ADB President Masato Kanda described Reko Diq as a “game changer” for Pakistan that will generate thousands of jobs, reduce poverty, and strengthen Pakistan’s economy.

He said Reko Diq would also bolster global supply chains for critical minerals, support the clean energy transition, and fund healthcare and education programs, including initiatives for women.

In its first phase, the mine will produce 800,000 tons of copper concentrate annually, making it the world’s fifth-largest copper mine. Copper is vital for electric vehicles, batteries, mobile phones, and data centers, according to ADB.

“The Reko Diq project will not only strengthen Pakistan’s economy but also play a vital role in the global transition to clean energy,” added Kanda.