The Asian Development Bank ( ADB ) has approved a financing package for the greenfield open-pit Reko Diq copper-gold mine in Pakistan.

ADB is one of several agencies funding the first US$6.6 billion phase of Reko Diq, with an innovative financing package that will help unlock greater private capital by derisking the project.

The development bank‘s contribution consists of up to US$300 million in senior loans to the Reko Diq Mining Company Private Limited ( RDMC ), which owns the mine, and a US$110 million partial credit guarantee to cover the equity component of the Government of Balochistan. Financing for the project will be the largest foreign direct investment in Pakistan’s history.

Barrick Mining Corporation, which will build and operate the mine, owns 50% of RDMC. The Government of Balochistan, through Balochistan Mineral Reserve Limited, owns 25%, while three federal state-owned enterprises together own 25%.

Work at the site, which involves building and operating the open-pit mine and processing plant, began this year. It is expected to start producing copper concentrates in late 2028 and operate for at least 37 years.

Fifth-largest copper mine

When fully completed, Reko Diq would be the world’s fifth-largest copper mine. In the first phase, the mine will produce on average 800,000 tonnes of copper concentrate per annum and play a key role in addressing the projected global copper shortfall.

Copper, a critical mineral for energy transition and digital transformation, is essential to the global production of renewable energy technologies, electric vehicles, batteries, smartphones, and data centres.

The project will use existing transportation networks ( road and rail ), which will require upgrades and some newly constructed sections, including a spur from the mine to the main railway line. During operations, the concentrates will be transported from the mine to Port Qasim using existing port facilities at the Pakistan International Bulk Terminal ( PIBT ).

Located in the Chagai district of Balochistan – Pakistan’s least developed province – Reko Diq is the first mining project supported by ADB under its new Critical Minerals-to-Manufacturing Value Chains approach, designed to help Asia and the Pacific capitalize on rising demand for materials essential to clean energy and digital technologies.

"Reko Diq will help the critical minerals supply chain, while advancing the clean energy transition and driving digital innovation across the region and beyond," says ADB president Masato 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."

International Finance Corporation ( IFC ) will provide a US$300 million A loan, along with a US$400 million concessional loan from another World Bank unit, the International Development Association ( IDA ). Also lending is Export Development Canada ( EDC ), while cover is being provided by Euler Hermes, Exportkreditnämnden ( EKN ) of Sweden, and Finnvera Oyi of Finland. Other development banks are considering supporting the project.