OGDCL Shareholders Approve $715 Million Funding for Reko Diq Project

In a major development for Pakistan’s mining and energy sectors, shareholders of Oil & Gas Development Company Limited (OGDCL) have approved a contribution of up to $715 million in the Reko Diq Mining Company (RDMC). The decision was made during the company’s Extraordinary General Meeting (EGM) held on September 10, 2025. The approved amount represents OGDCL’s pro-rata share of the committed expenditure for Phase 1 of the Reko Diq project. The funds will be provided to Pakistan Minerals (Private) Limited (PMPL) through equity and/or shareholder loans. This contribution accounts for one-third of the total funding required by PMPL for RDMC, as outlined in the project’s feasibility study. The $715 million investment is subject to adjustments for inflation and financing costs, as per the definitive agreements and financing documents for the project. The Reko Diq project, located in Balochistan, is one of the world’s largest undeveloped copper and gold deposits and is expected to play a transformative role in Pakistan’s economy. OGDCL, along with Pakistan Petroleum Limited (PPL) and Government Holdings (Private) Limited (GHPL), will also issue corporate guarantees on a joint and several basis to secure project financing for RDMC. These guarantees will cover the SOEs’ (State-Owned Enterprises) pro-rata share of the project’s secured debt obligations. The corporate guarantees include provisions for indemnity, tax gross-ups, and a cap on the SOEs’ total liability. Additionally, the guarantees allow for a “par call right,” enabling each SOE to purchase its share of the secured debt obligations under specific conditions. The guarantees and funding commitments are part of a broader agreement to ensure the successful development of the Reko Diq project. The project is being led by Barrick Gold Corporation, which will maintain a minimum 50% ownership and act as the operator. The Reko Diq project is a joint venture between Barrick Gold, the Government of Balochistan, and the three SOEs (OGDCL, PPL, and GHPL). It is expected to generate significant economic benefits, including job creation, foreign investment, and revenue for the country. The project’s first phase will focus on developing the mine’s infrastructure and production facilities, with subsequent phases expanding operations. The approval of OGDCL’s $715 million investment marks a critical step toward advancing this landmark initiative.