The Asian Development Bank (ADB) has approved a $410 million financing package to support the development of Pakistan’s Reko Diq copper-gold mine in Balochistan.
Positioned as one of the world’s largest untapped deposits of copper and gold, the mine is expected to elevate Pakistan’s standing as a strategic supplier of critical minerals needed for the global clean energy transition and digital innovation.
The financing package includes up to $300 million in senior loans to the Reko Diq Mining Company Private Limited (RDMC) and a $110 million partial credit guarantee to support the equity obligations of the Government of Balochistan. The total international funding for Reko Diq’s first phase stands at approximately $6 billion, making it the largest foreign direct investment in Pakistan’s history.
“ADB’s $410 million financing package for Reko Diq, approved last week, will create thousands of jobs while positioning Pakistan as a key supplier of critical minerals,” said ADB President Masato Kanda in a video message.
Honored to be received as a State Guest in Pakistan this week.
— Masato Kanda (@ADBPresident) August 30, 2025
I explored how @ADB_HQ is supporting Pakistan’s growing role in global critical mineral value chains and the clean energy transition through the Reko Diq project. And in response to the devastating floods I witnessed… pic.twitter.com/YYyT8zZJJf
Transforming Pakistan’s Mineral economy
Reko Diq is located in the Chagai district of Balochistan, Pakistan’s largest and most resource-rich yet economically underdeveloped province. The mine is expected to generate an estimated $74 billion in free cash flow over its 37-year life cycle, according to project estimates.
In its first phase, the mine will produce 200,000 tons of copper annually, increasing to 800,000 tons of copper concentrate in later phases. Production is scheduled to begin by late 2028, with full phase-one completion expected by 2029. A second phase, projected to cost an additional $3.5 billion, is expected to double production capacity.
“Reko Diq will help the critical minerals supply chain, while advancing the clean energy transition and driving digital innovation across the region and beyond,” said Kanda. “ADB’s support is also a game-changer for Pakistan, creating quality jobs and underpinning the nation’s transition toward a more resilient and diversified economy.”
Strategic Partnerships and Local Equity
The project is led by RDMC, a joint venture between Canada-based Barrick Gold Corporation (50% ownership), the Government of Balochistan (25%), and three federal state-owned enterprises holding the remaining 25%. Barrick will build and operate the mine.
The financing model is designed to unlock further private sector capital by derisking the investment environment through multilateral backing. ADB’s involvement is also part of its new Critical Minerals-to-Manufacturing Value Chains initiative, intended to support Asia and the Pacific’s growing role in supplying materials vital to renewable energy, electric vehicles, and digital infrastructure.
A Lifeline for Balochistan
The Reko Diq project promises transformative benefits for Balochistan, including thousands of jobs, infrastructure development, and targeted social programs in healthcare and education—particularly for women and marginalized communities. Given its remote location, development of the mine will also involve substantial investments in transport and logistics infrastructure.
Prime Minister Shehbaz Sharif met with ADB President Kanda during his visit to Islamabad this week. The two discussed “transformative investments, enhanced private sector engagement, and Pakistan’s role as a strategic supplier of critical minerals,” Kanda said.
“Together we will unlock Pakistan’s potential and improve lives across the country,” Kanda posted on X (formerly Twitter), following the meeting.
ADB’s expanding role in Pakistan
The Reko Diq mine is the first mining project backed by ADB under its critical minerals framework. The bank has committed more than $43 billion to Pakistan since it became a founding member in 1966, supporting infrastructure, energy, transport, and social services.
This latest financing reflects a broader push to integrate Pakistan’s resource wealth into the global minerals economy, amid rising demand for copper—a key component in renewable energy systems, electric vehicles, batteries, smartphones, and data centers.
The approval by ADB’s Board of Directors clears the way for final loan documentation and agreements to be signed, paving the path for one of the region’s most ambitious mining developments in decades.