PM Shehbaz orders the direct rail link to boost the Reko DIQ project of many billions of dollars

• The committee was formed to explore funding options for up PR
• The project is expected to boost cargo services, mineral transport.
• The Saudi Arabian company is planning up to $ 1 billion in investing in the Reko DIQ mine.
  

Prime Minister Shehbaz Sharif ordered the authorities to connect the Reko DIQ project at Balochistan on the Pakistan Railway Network (PR) by 2028 to support future transportation and cargo needs.

The move will support the growth of the mine, one of the largest copper underdeveloped deposits, which we hope will create $ 70 billion in free cash flow and $ 90 billion in operating cash flow.

American Miner Barrick Gold holds a 50% share in the Reko DIQ mine and Pakistan’s governments and the Balochistan province hold the other 50%.

The mining giant believes that the project has a significant impact on Pakistan’s racing economy.

Under the presidency of a meeting today, Prime Minister Shehbaz issued orders to set up a decorative committee to take advantage of funding issues for the upgrading and development of Pakistan’s railways.

The Commission will present recommendations on the funding required for the development of Pakistan’s railways and expanding it to Reko DIQ.

During the meeting, the Prime Minister was informed of the upgrade of the ML-1 and ML-3 railway as well as the overall development of Pakistan’s railways to meet the requirements of future transport and cargo services.

The prime minister noted that Pakistan’s railways served as a spine for the country’s economy and communication.

“Pakistan’s railways are a cheap, fast and environmentally friendly source of transport,” PM Shehbaz said.

He added that the mines and the metal sector of the Backedan would be developed and new employment opportunities would be created for people in the area after connecting the railways to Reko DIQ.

Saudi Arabian minerals announced in January that it plans to acquire a 10-20% share of the Reko Diq Copper and Gold project, while the deal is expected to bring $ 500 million to $ 1 billion.

In April, the shareholders of the Reko DIQ consortium approved a revised feasibility study and gave conditional approval for the development of phase-1, without prejudice to securing up to $ 3 billion in funding.

The project, which was delayed due to a long difference that ended in 2022, is expected to start production by the end of 2028. It will produce 200,000 tonnes of copper per year in its first phase, at an estimated cost of $ 5.5 billion. The first phase is expected to be completed by 2029.

The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Minister of Defense Khawaja Asif, Minister of Finance Ahad Khan Cheema, Minister of Maritime Affairs Junaid Anwar Chaudhry, Minister of Railway Bilal Azhar Kayani Senior government officials.