Reko DIQ ensures over 5.5 billion dollars from IFIS

• Only the most favorable loan terms to be selected by the commitments.
• Reko DIQ predicted to produce $ 74 billion in free cash flow in 37 years.
• Employees who are confident in executing the project at the initial cost of $ 6.7 billion.
  

Islamabad: Noting a basic discovery of Pakistan’s mining, Reko Diq Mining Company (RDMC) has secured more than $ 5.5 billion in funding commitments by international financial institutions (IFIS), surpassing the actual funding of $ 3.74 billion. $ 3.74 billion, $ 3.74 billion, $ 3.74 billion, $ 3.74 billion, $ 3.74 billion, $ 3.74 billion, $ 3.74 billion, $ 3.74 billion, $ 3,74 billion, $ 3,74 billion dollars, $ 3,74 billion, $ 3,74 billion, $ 3,74 billion, The news reported on Wednesday.

The $ 7.48 billion project located in the Chagai area of ​​Balochistan is developing on the basis of a 50:50 debt model and is expected to begin construction in December 2025, with commercial companies targeting 2028.

The US Export-Introduction Bank (EXIM) has committed about $ 1 billion, while Japanese Bank of International Cooperation (JBIC) has agreed to provide $ 300 million.

Danish’s credit export service has also provided guarantees to support the commercial financing of banks or the supply of equipment for the project.

According to senior officials, only the most favorable loan terms will be selected by the $ 5.5 billion commitments, which are said to be significantly more looming than formal commercial loans. The financial closure is expected by the end of September or early October 2025.

The RDMC also expressed the readiness to provide a $ 400 million bridge funding to support the construction of the rail infrastructure connecting the mines with Port Qasim through the Main Line-2 (ML-2) and the main line-3 (ML-3).

The timely completion of these railways is considered critical for the effective transportation of extracted minerals. Railway upgrade is expected to be completed before the mine is operating in 2028.

The Reko DIQ project is projected to produce $ 74 billion in free cash flow during its 37 -year -old functional life, placing it as a cornerstone of Pakistan’s long -term economic strategy.

Boards and annual general meetings of three-state entities-Limited Development Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Government Holdings (Private) Limited (GHPL)-have already been officially approved $ 715 million.

This brings the overall assessment of the project to $ 7.48 billion, an upward revision that reflects inflation, the volatility of basic products and the lenders’ emergency planning.

However, officials remain confident in carrying out the project within the initial cost of $ 6,765 billion, reporting strict cost controls and operational efficiency.

RDMC is a special use vehicle formed to run the project. It represents a partnership between Barrick Gold Corporation (50% of ownership) and the governments of Pakistan and Barocistan (the remaining 50%). Balochistan holds a 25% share, which includes a 10% free rate of interest and 15% fully funded share guaranteed by the federal government.

This arrangement ensures the participation of Balochistan without financial responsibility and provides it with a share of future revenue.

In addition, the project has attracted unprecedented interest from global financial institutions.

The International Finance Society (IFC), a member of the World Bank Group, has pledged $ 700 million, including a $ 400 million loan supported exclusively by the Pakistani state-based balance sheets, with no major guarantees.

The Asian Development Bank (ADB) has approved funding of $ 300 million, marking the first mine’s first investment in more than four decades. In addition, ADB has expanded a $ 110 million credit guarantee to the Balochistan government to boost the share capital position and manage the project -related risks.

“This is not just a mining project – it is a financial machine for Pakistan,” said a senior employee involved in the funding process. “Reko DIQ will redefine the development of large -scale resources, both in economic innovation and socio -economic impact.”

Following the financial closure, the RDMC is going to start mobilizing contractors, supplying equipment and space development, paving the way for what could become the most successful Pakistani public-private partnership relationship to date.