ADB Approves Financing for Reko Diq Copper Mining Project
Deal News | Aug 22, 2025 | Asian Development Bank
The Asian Development Bank (ADB) has sanctioned a substantial financing package for the Reko Diq copper-gold mining project in Pakistan. This initiative aims to fulfill the increasing global demand for critical minerals and aid in economic transformation and poverty alleviation in Pakistan. The financing comprises up to $300 million in senior loans and a $110 million partial credit guarantee to support the equity component of the Government of Balochistan. The project is notable for being the largest foreign direct investment in Pakistan's history. The mine is expected to be the world's fifth-largest copper producer, greatly influencing the supply chain of critical minerals necessary for clean energy and technological advancements. Developed by the joint venture of Barrick Mining Corporation and the Government of Balochistan, the project emphasizes equitable benefit-sharing and is anticipated to significantly boost the regional economy by creating jobs and supporting social programs. ADB's involvement marks its first Critical Minerals-to-Manufacturing Value Chains project, reinforcing its commitment to sustainable and inclusive growth.
Sectors
- Mining
- Finance
Geography
- Pakistan – The Reko Diq copper-gold mine is located in Pakistan's Balochistan province, which stands to benefit economically from the project.
- Asia – The involvement of the Asian Development Bank, which operates across Asia, emphasizes regional development impacts.
Industry
- Mining – Reko Diq is a copper-gold mining project critical to the global supply chain of minerals essential for clean energy technology.
- Finance – The Asian Development Bank is providing a significant financing package for the project, highlighting the financial industry's role in supporting infrastructure and development.
Financials
- $300 million – ADB's senior loans contribution to the Reko Diq Mining Company.
- $110 million – ADB's partial credit guarantee to cover the Government of Balochistan's equity component.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Asian Development Bank | Financier | Company | A multilateral development bank providing a financing package for the Reko Diq project. |
| Reko Diq Mining Company Private Limited | Target Company | Company | The company that owns and operates the Reko Diq copper-gold mine. |
| Barrick Mining Corporation | Operator | Company | Owns 50% of the Reko Diq and will build and operate the mine. |
| Government of Balochistan | Equity Holder | Government | Owns 25% of Reko Diq through Balochistan Mineral Reserve Limited. |
| Federal State-Owned Enterprises | Equity Holder | Company | Own collectively 25% of Reko Diq. |