Key Takeaways:
i) The International Finance Corporation (IFC), the World Bank’s private investment arm, has committed a $300 million loan to Pakistan’s Reko Diq copper-gold mining project.
ii) The Reko Diq mine in Balochistan is one of the world’s largest undeveloped copper and gold deposits and is jointly owned by Barrick Gold and the governments of Pakistan and Balochistan.
iii) This financing is part of a larger funding effort to develop the mine, which is expected to significantly boost Pakistan’s economy through exports, revenues, and job creation, with production slated to begin in 2028.
Islamabad, Pakistan – April 11, 2025 – The International Finance Corporation (IFC), the private investment arm of the World Bank, has announced a significant commitment of $300 million in debt financing for Pakistan’s Reko Diq copper-gold mining project, according to a disclosure made by the IFC and reported by Reuters on Wednesday. The original Reuters article by an unnamed author highlights this crucial financial backing for a project that holds immense potential for Pakistan’s economy.
The Reko Diq mine, situated in the mineral-rich Chagai District of Balochistan province, is recognized as one of the world’s largest untapped reserves of copper and gold. The project is a joint venture, with a 50% stake held by the Canadian firm Barrick Gold, and the remaining 50% owned by the federal government of Pakistan and the provincial government of Balochistan.
According to the Reuters report, Barrick Gold anticipates securing upwards of $2 billion in financing from international lenders to advance the Reko Diq project. Tim Cribb, the Project Director for Reko Diq, stated in an interview during the Pakistan Minerals Investment Forum 2025 that they are in discussions with multiple financial institutions, including the IFC, which is considering an additional $650 million through its International Development Association. Talks are also underway with the US Export-Import Bank for a potential $500 million to $1 billion, and with other development finance institutions like the Asian Development Bank, Export Development Canada, and the Japan Bank for International Cooperation for another $500 million. Cribb expressed optimism about finalizing the term sheets by late in the second quarter or early in the third quarter of this year.
He noted that a feasibility study completed in 2024 revealed substantial reserves of 15 million tons of copper and 26 million ounces of gold, positioning the mine as a potentially low-cost copper producer globally.
Mark Bristow, CEO of Barrick Gold, addressing attendees at the Pakistan Minerals Investment Forum, emphasized the transformative potential of the Reko Diq project, stating that it would become a “beacon that leads Pakistan” onto the global mining stage. He noted that a feasibility study completed in 2024 revealed substantial reserves of 15 million tons of copper and 26 million ounces of gold, positioning the mine as a potentially low-cost copper producer globally.
The development of the Reko Diq mine is expected to have a profound impact on Pakistan’s economy. It is projected to significantly boost the country’s exports, generate substantial tax and royalty revenues, and create thousands of jobs, particularly in the underdeveloped Balochistan province. The first phase of production is targeted for 2028, with an initial annual output of 240,000 tons of copper and 300,000 ounces of gold. Phase two aims to increase this to 400,000 tons of copper and 500,000 ounces of gold per year.
The World Bank’s broader strategy includes an anticipated annual investment of $2 billion in Pakistan’s infrastructure over the next decade, signaling a long-term commitment to the country’s development.
