Pakistan secures Rs 35901855000 package from ADB to unlock billions in Reko Diq project, it relates to…

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Pakistan has secured a USD 410 million (Rs 3590 crore) financial package from the Asian Development Bank (ADB) for the development of the Reko Diq copper-gold mine in Balochistan, reports suggest. Located in the Chagai district of Balochistan, the project may unlock transformative economic development and poverty reduction in the cash-trapped nation. The project is reportedly one of the world’s largest untapped copper and gold deposits.

How the Reko Diq copper-gold mine may boost Pakistan’s economy

It will create thousands of jobs, stimulate regional economic growth, and support social development programs in healthcare and education, including targeted initiatives for communities, especially women. Once fully completed, Reko Diq will be among the top five copper mines in the world, producing on average 800,000 tonnes of copper concentrate annually in its first phase.

Pakistan gets a USD 410 million package

ADB’s contribution consists of up to USD 300 million in senior loans to the Reko Diq Mining Company Private Limited (RDMC), which owns the mine, and a USD 110 million partial credit guarantee to cover the equity component of the Government of Balochistan. 

New project a game-changer for Pakistan?

Reko Diq is the first mining project supported by ADB under its new Critical Minerals-to-Manufacturing Value Chains approach. ADB President Masato Kanda said, “ADB’s support is also a game-changer for Pakistan, creating quality jobs and underpinning the nation’s transition toward a more resilient and diversified economy.”

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Who owns the Reko Diq Mining project?

The Reko Diq Mining Company Private Limited (RDMC) is a joint venture designed to ensure equitable benefit-sharing. Canadian mining giant Barrick, which will build and operate the mine, owns 50% of RDMC; the Government of Balochistan owns 25 per cent; and three federal state-owned enterprises together own 25 per cent.