Barrick Turns to US, Global Lenders for $3.5 Billion Reko Diq Financing

Barrick Mining is pursuing up to $3.5 billion in financing from the United States and other international lenders to develop the massive Reko Diq copper and gold mine in Pakistan’s Balochistan province, following the collapse of a potential funding deal with Saudi Arabia. Mark Bristow, Barrick’s chief executive, revealed that the company is working on a “G7-country financing package” for the $9 billion project, according to a report by the Financial Times. The financing plan involves major global institutions, including the World Bank’s International Finance Corporation (IFC), the US government’s Export-Import Bank and Development Finance Corporation, the Asian Development Bank, and lenders from Germany, Canada, and Japan. “There is a lot of interest to support Pakistan,” Bristow said, adding that the Reko Diq project has “focused a spotlight” on the region. His comments came as Barrick reported a 33% year-on-year increase in net earnings, reaching $811 million in the second quarter of 2025, buoyed by record-high gold prices. The first phase of the Reko Diq mine, which is expected to begin production in 2028, is estimated to cost $6.6 billion. Barrick owns 50% of the project, while Pakistan’s federal and provincial governments hold the remaining stake. Bristow said both Barrick and Pakistan are expected to invest between $1.5 billion and $1.8 billion each, with the remaining $3 billion to $3.5 billion to be raised through international lenders. “It’s a perfect situation where Pakistan is investing alongside us, 50-50,” Bristow said. “We bring the skills and we’re the operators, and then we’re gearing it with international limited recourse financing.” The financing push comes after discussions with Saudi Arabia’s Manara Minerals, a state mining fund, to acquire up to 20% of the project failed to materialize. Bristow clarified in an interview with Reuters that Barrick is not acting as a facilitator between Saudi Arabia and Pakistan for the project, despite earlier talks involving Saudi Arabia’s Public Investment Fund (PIF). The development of Reko Diq comes at a time of heightened geopolitical competition for critical minerals needed for energy infrastructure and military hardware. The mine is expected to produce significant quantities of copper concentrate, a key material for renewable energy technologies and defense systems. Bristow noted that any US government funding for the project would likely secure access to the mine’s copper concentrate. However, he highlighted a key challenge: the US lacks sufficient domestic smelting capacity to process the concentrate into metal. “The challenge for the US is smelting to capacity, it’s all spoken for,” he said, adding that the country needs more smelters to reduce its reliance on metal imports from China. The push for critical minerals has become a foreign policy priority for the US and other Western nations, with former President Donald Trump emphasizing the need to secure access to these resources. The Reko Diq project could play a pivotal role in this strategy, given its scale and potential output. In a separate development, Bristow commented on the global gold market, stating that the World Gold Council is awaiting clarity from the US on potential tariffs on gold bars. However, he downplayed the impact on mining companies, noting that they are “price takers” and would not be significantly affected by such measures. The Reko Diq project represents a significant opportunity for Pakistan to attract foreign investment and develop its mineral resources.