$6.4 Billion Financial Closure for Reko Diq Project Set for Next Month

The $6.4 billion financial closure of the Reko Diq copper and gold mining project is expected to take place next month, official sources told ProPakistani. Out of the total project financing, approximately $3 billion will be arranged through international financing institutions. The remaining $3.4 billion will be borne by the federal government, of which $1.7 billion will be covered by Balochistan, sources added. Key international financiers, including the US EXIM Bank, UK EXIM Bank, the World Bank, and the Asian Development Bank are part of the financial closure process alongside the federal government and the provincial government of Balochistan. Sources revealed that loan modalities with international partners are currently being finalized. Following the financial closure, the level of investment from Pakistan is also expected to rise. Production at Reko Diq is expected to commence about three years after the financial closure is completed. During the first year of production, the combined revenue for the federation and Balochistan is projected to reach $3 billion.