The Asian Development Bank (ADB) has approved a financing package for the Reko Diq copper-gold mine in Pakistan, aiming to meet rising global demand for critical minerals while promoting economic development and poverty reduction in the country. ADB President Masato Kanda emphasized that the project will support the global critical minerals supply chain, advance the clean energy transition, drive digital innovation, and create quality jobs in Pakistan, contributing to a more resilient and diversified economy.
ADB’s support 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 cover the equity component of the Government of Balochistan. This innovative financing package is designed to unlock greater private capital by de-risking the investment and represents the largest foreign direct investment in Pakistan’s history.
When fully operational, Reko Diq is expected to be the world’s fifth-largest copper mine. The first phase will produce an average of 800,000 tons of copper concentrate annually, addressing the projected global copper shortfall. Copper, a critical mineral for energy transition and digital technologies, is essential for renewable energy, electric vehicles, batteries, smartphones, and data centers.
Located in Pakistan’s least developed province, the Chagai district of Balochistan, the project is expected to generate thousands of jobs, stimulate regional economic growth, and support social development initiatives in healthcare and education, with a focus on community benefits and inclusion of women. RDMC is structured as a joint venture to ensure equitable benefit-sharing, with Barrick Mining Corporation owning 50%, the Government of Balochistan 25%, and three federal state-owned enterprises holding the remaining 25%.
Construction of the open-pit mine and processing plant began in 2025, with copper concentrate production expected to start in late 2028. The mine will operate for at least 37 years and is being developed under strict environmental, social, and governance standards. Reko Diq is the first project supported by ADB under its Critical Minerals-to-Manufacturing Value Chains approach, which seeks to help Asia and the Pacific capitalize on rising demand for critical minerals while adhering to rigorous environmental and social requirements.
The approval by ADB’s Board of Directors authorizes the Bank to finalize loan documentation and other requirements before formal commitment of financing through signed agreements. Since joining ADB in 1966, Pakistan has benefited from more than $43 billion in support for inclusive growth, infrastructure, energy, transport, and social services. ADB continues to leverage innovative financial tools and strategic partnerships to promote sustainable, resilient, and inclusive development across Asia and the Pacific.
