Barrick Gold is advancing its Reko Diq copper and gold project in Pakistan by seeking over $2 billion in financing from international lenders. The project, jointly owned by Barrick Gold and the governments of Pakistan and Balochistan, is among the world’s largest underdeveloped copper-gold deposits. Phase one of the project aims to commence production in 2028.
Project Director Tim Cribb disclosed that discussions are underway with multiple financial institutions, including the International Finance Corporation (IFC) and the International Development Association, for approximately $650 million. Additionally, talks with the US Export-Import Bank could secure between $500 million to $1 billion, while development finance institutions such as the Asian Development Bank, Export Development Canada, and the Japan Bank for International Cooperation may contribute around $500 million. Cribb anticipates finalizing term sheets by late Q2 or early Q3.
The project has undergone a recent feasibility study, resulting in an increased phase one throughput of 45 million tons per annum, up from the initial 40 million. Phase two is projected to handle 90 million tons per annum, an increase from the earlier estimate of 80 million. Consequently, the mine’s lifespan has been adjusted to 37 years, with potential extensions based on unaccounted-for minerals. The estimated cost for phase one has also been revised to $5.6 billion from the previous $4 billion.
To support infrastructure development, particularly railway financing, discussions are ongoing with the IFC and other lenders. Infrastructure costs are projected between $500 million to $800 million, with an initial expenditure of approximately $350 million. Potential offtake agreements are being considered with countries in Asia, including Japan and Korea, as well as European nations like Sweden and Germany, aiming to secure copper supplies for their industries.
