Reko Diq Secures $5.5 Billion in Global Financing Commitments

Reko Diq Mining Company (RDMC) has lined up over $5.5 billion in financing commitments from international financial institutions, exceeding its $3.74 billion funding requirement for the massive copper and gold project in Balochistan’s Chagai district. The $7.48 billion project, structured on a 50:50 debt-to-equity basis, is scheduled to begin construction in December 2025, with commercial operations targeted for 2028. Among the commitments, the US Export-Import Bank has pledged around $1 billion, while the Japan Bank for International Cooperation will provide $300 million. Denmark’s export credit agency has also offered guarantees to support bank financing or equipment procurement. According to a national daily, only the most favorable loan terms will be finalized, noting that the commitments carry more lenient conditions than standard commercial loans. Financial closure is expected by late September or early October 2025. RDMC has also prepared $400 million in bridge financing to develop railway links from the mine site to Port Qasim through Main Line-2 and Main Line-3. The railway upgrade, expected to be completed before the mine becomes operational, is considered essential for transporting extracted minerals efficiently. Over its 37-year operational life, the Reko Diq project is forecast to generate $74 billion in free cash flows, placing it at the center of Pakistan’s long-term economic growth plans. The Boards of Oil and Gas Development Company Limited, Pakistan Petroleum Limited, and Government Holdings (Private) Limited have already approved $715 million in costs, bringing the total valuation to $7.48 billion. Officials remain confident the project will be completed within the earlier $6.765 billion estimate through strict cost controls. RDMC, the special-purpose vehicle developing the project, is jointly owned by Barrick Gold Corporation with 50% equity, and the governments of Pakistan and Balochistan holding the remaining 50%. Balochistan’s share includes a 10% free-carried interest and 15% fully funded equity backed by federal guarantees, ensuring provincial participation without financial liability. The project has also attracted strong interest from global lenders. The International Finance Corporation has committed $700 million, including a $400 million subordinated loan backed only by the balance sheets of Pakistani state-owned enterprises without sovereign guarantees. The Asian Development Bank has pledged $300 million, its first mining-sector investment in more than 40 years, and extended a $110 million credit guarantee to strengthen Balochistan’s equity position.