The United States has pledged approximately $1.3 billion in financial commitments to support the development of the Reko Diq copper and gold mining project in Pakistan’s insurgency-affected Balochistan province, marking one of the most significant foreign investments in the region’s mineral sector.
Reko Diq, situated near the Pakistan–Iran border, is recognized as one of the world’s largest undeveloped copper and gold deposits. The total cost of developing the project is estimated at $7 billion, with production scheduled to begin by late 2028, subject to security and infrastructure challenges.
Project Structure and Ownership
The Reko Diq project is a joint initiative between Canada’s Barrick Mining Corporation and Pakistani stakeholders. Barrick holds a 50% stake, while the Government of Pakistan, including provincial interests, holds the remaining 50%, with 25% held by three federal state-owned enterprises and 25% by the Government of Balochistan.
The U.S. investment is being facilitated through the Export-Import Bank of the United States (EXIM) as part of Washington’s drive to strengthen critical mineral supply chains and deepen economic collaboration with Pakistan.
Security and Operational Challenges
Balochistan’s security environment remains fragile, with frequent attacks by separatist and extremist groups posing risks to infrastructure and personnel. Ensuring secure operations will be a priority as production timelines advance.
Additionally, the project requires upgrades to transportation infrastructure, including rail links to carry copper concentrate for processing in Karachi or abroad.
Investment and Economic Impact
Alongside the U.S. financing pledge, international financial institutions such as the International Finance Corporation (IFC) and the Asian Development Bank are assembling additional funding, contributing to a broader financing package estimated to exceed $2.6 billion.
The Reko Diq project added 13 million ounces to Barrick’s gold reserves in 2024 and is projected to produce up to 200,000 metric tons of copper annually in its first phase, with further expansion expected to increase output significantly.
Economic forecasts indicate that over its lifetime, Reko Diq could generate more than $70 billion in free cash flow over a projected 37-year mine life.
Strategic Importance for Pakistan
For Pakistan, the Reko Diq project is central to national efforts to expand the mineral sector’s contribution to GDP, diversify exports, and attract foreign direct investment. The government of Prime Minister Shehbaz Sharif has welcomed the U.S. commitment, calling it a vote of confidence in the country’s economic reforms and mining policy.
The investment also has geopolitical significance amid global competition for critical minerals and a shift in supply chain diversification away from China.
