Construction Work Begins on Reko Diq Gold-Copper Project

Pakistan has started construction work on multi-billion dollars Rekodiq Gold and Copper Project in Pakistan before achieving financial close.  

All Lenders have cleared $3.5 billion financing for multi-billion dollars Rekodiq Gold and Copper Project in Pakistan.

Read More: Metso To supply Equipment in Reko Diq Gold Project

Pakistani companies are executing gold and copper project with the participation of Canadian firm. Pakistani firms PPL, OGDCL, Mari Energies and GHPL are stakeholders of this project.

Pakistan will host financial close ceremony of the project in January next year.

Pakistan and its partners are set to achieve financial close of $3.5 billion funding for multibillion dollars Rekodiq gold and copper projected in Balochistan province in the next two weeks.

Sources said that Pakistan had formulated Plan A and B to execute the work on the Rekodiq project. Under Plan A, Pakistan was to seek financing from lenders.

They said that Pakistani side and its partners had deployed machinery at site of Rekodiq and they had already started construction on the site without waiting for the financial close of the project.

They said that financial closing ceremony of Rekodiq project will be held in January this year in Pakistan.

Legal adivisor of Lenders briefed the Pakistani petroleum minister and managing director Oil and Gas Development Company (OGDCL) about the financial close of Rekodiq project.

Pakistan side was informed that financial arrangements for Rekodiq project had been completed and lenders were engaged in documentation. Pakistani side believed that financial close is expected to be achieved during the upcoming two weeks.

The legal advisor also informed that lenders of the Rekodiq project did not any question relating to Pakistani side which showed the investors’ confidence on Pakistan.

Federal Minister for Petroleum Ali Pervaiz Malik, OGDCL Managing Director Ahmed Hayat Lak and Munib Hussain, a London-based partner at Milbank, met to review progress in Pakistan’s energy and resources sector. During the discussion, Hussain, who advises the project’s financiers, briefed the minister and OGDCL leadership on the encouraging progress toward achieving financial close for the Reko Diq Copper and Gold Project.

The meeting also touched on broader investment prospects in Pakistan’s mining as well as oil and gas sectors, with all participants reaffirming their support for initiatives aimed at unlocking long-term growth and attracting strategic capital.

Although Pakistan has vast mineral wealth, the sector contributes only about 3.2% to GDP, while its share in global mineral exports stands at a negligible 0.1%. With new exploration activity, rising foreign participation and improvements in infrastructure, the industry is expected to grow significantly in the coming years.

The country’s mineral-rich terrain spans around 600,000 square kilometres, containing 92 identified minerals—52 of which are commercially extracted. Annual mineral production is estimated at 68.52 million metric tonnes, supported by more than 5,000 operational mines and 50,000 SMEs. The sector directly employs nearly 300,000 people.

International interest in Pakistan’s mining landscape continues to increase, particularly as global companies look to unexploited reserves. The Reko Diq deposit in Chagai, Balochistan—home to one of the world’s largest undeveloped copper resources—has emerged as a flagship project for the country’s mining ambitions.

The project, revitalized through partnership with Canada’s Barrick Gold, is slated to begin copper and gold production by 2028. The initial investment stands at $5.5 billion. Barrick CEO Mark Bristow, whose company holds a 50% stake, expects the Reko Diq reserves to generate an estimated $74 billion in free cash flow over nearly four decades.

Once operational, the mine is projected to add $2.8 billion in annual exports, generate significant employment opportunities and spur economic activity in the region. Future expansion plans aim to boost output to 400,000 tonnes of copper and 500,000 ounces of gold per year, with an additional investment of $3.5 billion.

To support transportation and export operations, a dedicated rail link is being developed in collaboration with Pakistan Railways. This infrastructure will facilitate the movement of supplies to Karachi and enable the export of copper concentrate and gold.