Barrick Gold secures $3 billion funding for Reko Diq mining project

In Pakistan, Barrick Gold, a Canadian mining corporation, is set to secure significant international financing for its Reko Diq copper and gold project located in Balochistan. This financing includes a $300 million loan commitment from the World Bank's International Finance Corporation. It is aimed at completing the first phase of the project, which has an estimated cost of $5.6 billion and is expected to commence production by 2028. The broader plan involves raising a total of $3 billion through various global financial institutions, which is necessary for advancing the operations of one of the largest untapped copper-gold deposits in the world. As part of the financing strategy, Barrick Gold's president, Mark Bristow, indicated that a financing agreement anticipated to be finalized by mid-year would involve contributions from other significant financial entities, including US Exim Bank, the Asian Development Bank, and several Scandinavian countries. The financed amount is projected to support Barrick and Pakistan in providing equity for approximately half of the total phase one costs. The overall project would significantly benefit from the generated $70 billion in free cash flow throughout its lifespan, which is poised to last several decades. The financial backing also aims to facilitate the construction and operation of necessary infrastructure, including a power plant and railway systems essential for project delivery. Phase one involves not only the extraction of resources but also the establishment of platforms to process minerals on site in the future. The project is notable for its anticipated high returns on investment and aims to produce substantial amounts of copper and gold, establishing a crucial mining footprint in Pakistan and allowing the country to leverage its rich mineral resources. Overall, the investment marks a historic commitment, especially as it represents the first time the World Bank is funding a mining project of this magnitude. The project aligns with Pakistan’s long-term goals of enhancing its mineral sector and attracting foreign investment, which is vital for the country's economic growth. The collective vision aims to ensure that this major investment not only bolsters Barrick's portfolio but also enables Pakistan's development incentives aimed at leveraging natural resource capital effectively.