The US Export-Import (Exim) Bank has approved financing of $1.25 billion to support the advanced mining of critical minerals at the Reko Diq project in Balochistan.
In a video statement on Wednesday, US Chargé d’Affaires Natalie Baker said that Exim Bank will provide Pakistan with nearly $2 billion worth of modern mining equipment and services over the coming years to fully operationalise the project.
She said the initiative is expected to create 6,000 jobs in the United States and around 7,500 jobs in Balochistan.
Baker said that the Reko Diq project would serve as a model for the mining industry and benefit American exporters, Pakistani partners and local communities alike.
She added that the Trump administration had made such economic cooperation a key part of its diplomatic strategy and hoped to see further collaboration between Pakistan and the United States in this sector.
Balochistan is considered Pakistan’s most mineral-rich region: In the 1970s, the Geological Survey of Pakistan discovered significant copper and gold deposits in the Reko Diq and Saindak areas.
Located in the Chagai district of Balochistan, Reko Diq is often referred to as a “sleeping giant” because the project remained stalled for years due to legal disputes and financial hurdles.
That changed at the end of 2022, when a new agreement finally put the long-delayed project back on track.
Under the current ownership structure, the Balochistan government holds a 25% stake, the federal government 25%, and Canadian firm Barrick Gold 50%.
Barrick Gold has committed to investment and pledged to start production by 2028.
At present, mining and survey activities are going on in the red hills of Reko Diq, and authorities are hopeful that full-scale extraction will begin by 2028.
The government is also exploring additional investment sources, including potential financing from Saudi firm Manara Minerals.
Barrick Gold CEO Mark Bristow said that upon completion of the project’s second phase, Reko Diq will be able to produce 400,000 tonnes of copper annually.
He said the first phase would cost around $5.5 billion, with production of 200,000 tonnes of copper concentrate and 250,000 ounces of gold per year expected from 2028.
