- Solely most beneficial mortgage phrases to be chosen from commitments.
- Reko Diq projected to generate $74bn in free money flows in 37 years.
- Officers assured of executing venture inside unique value of $6.7bn.
ISLAMABAD: Marking a key breakthrough for Pakistan’s mining sector, Reko Diq Mining Firm (RDMC) has secured over $5.5 billion in financing commitments from worldwide monetary establishments (IFIs), surpassing its precise funding requirement of $3.74 billion, The Information reported on Wednesday.
The $7.48 billion venture positioned in Balochistan’s Chagai district is being developed underneath a 50:50 debt-to-equity mannequin and is anticipated to start development in December 2025, with business operations focused for 2028.
The US Export-Import Financial institution (EXIM) has dedicated roughly $1 billion, whereas the Japan Financial institution for Worldwide Cooperation (JBIC) has agreed to offer $300 million.
Denmark’s export credit score company has additionally provided ensures to help business financial institution financing or gear procurement for the venture.
In keeping with senior related officers, solely essentially the most beneficial mortgage phrases will likely be chosen from the $5.5 billion in commitments, that are mentioned to be considerably extra lenient than commonplace business loans. Monetary closure is anticipated by the tip of September or early October 2025.
The RDMC has additionally expressed readiness to offer bridge financing of $400 million to help the development of railway infrastructure linking the mine website to Port Qasim by way of Essential Line-2 (ML-2) and Essential Line-3 (ML-3).
The well timed completion of those railway strains is seen as vital for the environment friendly transport of extracted minerals. The railway improve is anticipated to be accomplished earlier than the mine turns into operational in 2028.
The Reko Diq venture is projected to generate $74 billion in free money flows over its 37-year operational life, positioning it as a cornerstone of Pakistan’s long-term financial technique.
The Boards of Administrators and Annual Common Conferences of three state-owned entities — Oil and Gasoline Improvement Firm Restricted (OGDCL), Pakistan Petroleum Restricted (PPL), and Authorities Holdings (Non-public) Restricted (GHPL) — have already formally accredited $715 million in venture prices.
This brings the full venture valuation to $7.48 billion, an upward revision reflecting inflation, commodity value volatility, and contingency planning by lenders.
Nonetheless, officers stay assured in executing the venture throughout the unique value estimate of $6.765 billion, citing tight value controls and operational efficiencies.
RDMC is a special-purpose car shaped to execute the venture. It represents a partnership between Barrick Gold Company (50% possession) and the governments of Pakistan and Balochistan (the remaining 50%). Balochistan holds a 25% stake, which features a 10% free-carried curiosity and a 15% absolutely funded share assured by the federal authorities.
This association ensures Balochistan’s participation with out monetary legal responsibility and offers it with a share in future revenues.
As well as, the venture has attracted unprecedented curiosity from international monetary establishments.
The Worldwide Finance Company (IFC), a member of the World Financial institution Group, has pledged $700 million, together with a $400 million subordinated mortgage backed solely by the steadiness sheets of Pakistani SOEs, with none sovereign ensures — a big achievement in structuring risk-sharing mechanisms.
The Asian Improvement Financial institution (ADB) has accredited $300 million in financing, marking its first mining-sector funding in over 4 many years. As well as, the ADB has prolonged a $110 million credit score assure to the Authorities of Balochistan to reinforce its fairness place and handle project-related dangers.
“This is not only a mining venture — it is a transformational financial engine for Pakistan,” mentioned a senior official concerned within the financing course of. “Reko Diq will redefine large-scale useful resource growth, each in monetary innovation and socio-economic affect”.
Following monetary closure, RDMC is ready to start contractor mobilisation, gear procurement, and website growth, paving the way in which for what may change into Pakistan’s most profitable public-private partnership to this point.
