ADB Approves $410 Million for Pakistan
ADB Green-lights $410 Million for Reko Diq Mega Mine in Pakistan
- Breakdown of Funding:
- $300 million in senior loans to Barrick’s Reko Diq Mining Company (RDMC).
- $110 million in partial credit guarantee for the Government of Balochistan.
- This marks ADB’s first mining investment in over 40 years and one of the largest foreign direct investments in Pakistan’s history.
- The $6.6 billion project is expected to begin production in 2028, potentially reaching 200,000 metric tons of copper annually initially, with plans to double that output later, and generate around $70 billion in free cash flow over its 37-year lifespan.
- The project is integral to Pakistan’s strategy to tap into global demand for critical minerals needed for clean energy and digital technologies.
IFC Boosts Financing and Additional Support
- The International Finance Corporation (IFC) has committed a $400 million subordinated loan, bringing its total contribution to $700 million.
- Barrick and its partners are also in talks with other financial institutions—such as the U.S. EXIM Bank, Export Development Canada, and Japan’s JBIC—to fill the remaining gaps in project financing, which could exceed $2 billion.
