In a monumental show of international confidence, Pakistan’s Reko Diq Mining Company (RDMC) has successfully secured financing commitments exceeding $5.5 billion from a consortium of global financial institutions. This figure vastly surpasses the project’s actual funding requirement of $3.74 billion, allowing the company to select only the most favourable loan terms available. The funding package, described as significantly more lenient than standard commercial loans, is expected to reach financial closure by the end of September or early October 2025, setting the stage for construction to commence in December.
The list of supporters reads like a who’s who of international finance. Major commitments include approximately $1 billion from the US EXIM Bank, $300 million from the Japan Bank for International Cooperation (JBIC), and a landmark $700 million pledge from the World Bank’s IFC. In a historic move, the Asian Development Bank (ADB) is investing $300 million—its first mining sector investment in over 40 years—and providing a $110 million credit guarantee for the Government of Balochistan. Denmark’s export credit agency has also offered guarantees, underscoring the project’s global appeal.
The $7.48 billion project, a 50:50 joint venture between Barrick Gold Corporation and a consortium of Pakistani state-owned entities and the Balochistan government, is poised to become a cornerstone of the national economy. Beyond mining, RDMC has expressed readiness to provide $400 million in bridge financing for the critical upgrade of railway infrastructure linking the mine to Port Qasim via ML-2 and ML-3, ensuring efficient transport once commercial operations begin in 2028.
Over its 37-year life, Reko Diq is projected to generate a staggering $74 billion in free cash flows. The project structure ensures Balochistan’s participation with a 25% stake, including a 10% free-carried interest, guaranteeing the province shares in the revenues without financial liability. Hailed by officials as a “transformational economic engine,” Reko Diq represents a new chapter of large-scale development and financial innovation for Pakistan, marking its most successful public-private partnership to date.
