Global lenders secure $3.5bn debt package for Reko Diq

• Officials expect full financial closure by mid-December.
• IFC, ADB, JBIC and European ECAs commit project debt.
• RDMC pledges $390 million to upgrade ML-2 and ML-3.

ISLAMABAD: In a major boost for Pakistan’s biggest mining project, half of the $3.5 billion debt required for the Reko Diq copper-gold project has been secured after the US Export-Import Bank (EXIM) approved a $1.25 billion facility. The News was mentioned.

Officials now expect to achieve full financial close on the $7.7 billion venture in the first two weeks of December, ahead of the Reko Diq Mining Company (RDMC) board meeting on December 9, where final approval is expected.

The capital cost of the project was originally estimated at $6.9 billion, but lenders pushed for an upward revision to $7.7 billion to build contingency and risk reserves.

Senior officials involved in the negotiations said $3.5 billion has already been arranged of the $5.5 billion in commitments from multilateral lenders and export credit agencies.

“We first approached the most interested international financial institutions, EXIM banks and export and import finance agencies, giving priority to those offering the most competitive lending terms,” ​​an official said.

Financial closure — previously targeted for October 2025 — was delayed by the US government shutdown, which suspended EXIM Bank’s board decisions. With the shutdown now resolved, the bank approved the $1.25 billion tranche.

Canada’s Export Development Canada (EDC) will co-finance the venture as an export credit agency, bringing combined US EXIM–EDC financing to $1.4 billion. In return, both agencies will provide critical equipment and services for mine construction.

Multilateral lenders have also invested heavily, with the International Finance Corporation (IFC) contributing $700 million and the Asian Development Bank (ADB) $300 million.

The Japan Bank for International Cooperation (JBIC) is set to extend import financing to close to $300 million, while three European entities — Germany’s Euler Hermes and KfW and Sweden’s EKN — will jointly provide $900 million in long-term import financing in connection with copper, gold and related mineral offtake deals.

Collectively, JBIC and European contributions account for 30% of the funding package.

Officials said detailed rate negotiations were underway, noting that “different parameters apply to classes of lenders” and that financial managers were in “intensive discussions” to finalize terms. In the event of disputes, the agreements designate the London Court of International Arbitration under English law as the binding forum.

Construction momentum has been building since 2023, with heavy machinery being mobilized to the project site and local and foreign contractors accelerating mine development activities.

The financing plan follows a debt-to-equity ratio of 50:50 with the aim of ensuring financial stability while spreading risk between domestic and international partners. RDMC – the special purpose vehicle executing the project – is owned by Barrick Gold Corporation (50% and main operator), the Government of Pakistan (25% through OGDCL, PPL and GHPL) and the Government of Balochistan (25%, including 10% free and 15% fully funded share).

This structure ensures that Balochistan benefits from revenues without incurring any upfront financial liabilities.

In parallel, RDMC has committed $390 million in bridge funding to upgrade Pakistan Railways Main Line-2 and Main Line-3, strengthening logistical links between the mine and Port Qasim. The rail upgrades are expected to be completed before production starts in 2028, allowing for the smooth export of refined copper and gold.