Barrick Gold Aims to Secure Over $2 Billion for Reko Diq Mine in Pakistan

Barrick Gold is targeting more than $2 billion in financing from international lenders to support the development of its Reko Diq copper and gold project in Pakistan. Term sheets for the funding are expected to be finalized by early Q3, according to Tim Cribb, the project director, said in an interview with Reuters on Tuesday. The Reko Diq mine is one of the world’s largest undeveloped copper-gold deposits. It’s projected to generate $70 billion in free cash flow and $90 billion in operating cash flow over its lifespan. The project is a joint venture between Barrick Gold and the governments of Pakistan and Balochistan. Phase one of the mine, slated to begin production in 2028, is currently under financial review by multiple lenders. Cribb said the project is in discussions to raise $650 million from the International Finance Corporation (IFC) and the International Development Association (IDA). Additional talks are underway with the U.S. Export-Import Bank for $500 million to $1 billion, and another $500 million from institutions such as the Asian Development Bank, Export Development Canada, and the Japan Bank for International Cooperation. “We aim to close the term sheets by late Q2 or early Q3,” Cribb said. The company is also negotiating railway infrastructure financing with the IFC and other lenders, with costs estimated between $500 million and $800 million. Initial infrastructure investment is expected to be around $350 million. A recent feasibility study has expanded the scope of the project. Phase one throughput has been increased from 40 to 45 million tons per year, and phase two has grown from 80 to 90 million tons per year. As a result of the higher throughput, the estimated mine life has been shortened from 42 to 37 years, though Barrick believes unexplored mineral resources could potentially extend it up to 80 years. Phase one development costs have also risen, from an earlier estimate of $4 billion to $5.6 billion. The World Bank plans to invest $2 billion annually in Pakistan’s infrastructure over the next decade. According to Cribb, potential offtake agreements are in discussion with countries across Asia, such as Japan and South Korea, as well as European nations like Germany and Sweden, all eager to secure future copper supplies for their industries.