ADB Backs Pakistan’s Reko Diq Copper-Gold Mine

Picture Credit: Daily Excelsior

The Asian Development Bank (ADB) has approved a major financing package for Pakistan’s Reko Diq copper-gold mine, a landmark project expected to reshape both the country’s economy and the global critical minerals supply chain.

ADB President Masato Kanda said the initiative will not only strengthen the clean energy transition and digital innovation but also create transformative opportunities for Pakistan. The bank will provide up to $300 million in senior loans to the Reko Diq Mining Company Private Limited (RDMC), along with a $110 million partial credit guarantee to support the Government of Balochistan’s equity stake.

The mine, located in the underdeveloped Chagai district of Balochistan, is set to become the world’s fifth largest copper mine once fully operational. Phase one alone is expected to produce around 800,000 tons of copper concentrate annually—vital for renewable energy systems, electric vehicles, and digital infrastructure.

The project represents the largest foreign direct investment in Pakistan’s history. Beyond its role in meeting the projected global copper shortfall, it will generate thousands of jobs, fund healthcare and education initiatives, and directly benefit local communities, especially women.

RDMC is structured as a joint venture: Barrick Mining Corporation holds 50%, the Government of Balochistan 25%, and three federal state-owned enterprises the remaining 25%. Production is expected to begin in late 2028, with operations projected to last at least 37 years.

As the first mining project supported under ADB’s new Critical Minerals-to-Manufacturing Value Chains approach, Reko Diq underscores the region’s strategic push into materials essential for the future economy. With rigorous environmental and social safeguards, the initiative signals a turning point for Pakistan’s growth story and its integration into global clean energy and technology markets.