Barrick’s Reko Diq in line for $410M financing

The Asian Development Bank (ADB) is to provide a $410-million (C$570-million) package to help build Barrick Mining’s (TSX: ABX; NYSE: B) Reko Diq copper-gold project in Pakistan, one of the world’s largest untapped deposits, Reuters reported on Thursday.

The package includes two loans totaling $300 million to Barrick and a $110 million financing guarantee for the government of Pakistan, Reuters said, citing two unnamed sources. The aid forms part of a broader $6.6-billion development plan for the mine, which is half-owned by Barrick and the rest by Pakistan’s federal and Balochistan province governments.

Other potential financiers for a total of some $2 billion include the U.S. Export-Import Bank, Export Development Canada and Japan’s Bank for International Cooperation, project director Tim Cribb said in April. International Finance Corp., the World Bank’s private investment arm, has already agreed to fund $700 million. 

Shares in Barrick Mining rose 2.7% Thursday morning in Toronto to C$35.40 apiece, valuing the miner at C$60.5 billion.

Reko Diq’s scale 

Reko Diq is forecast to generate about $70 billion in free cash flow over its life and more than $90 billion in operating cash flow. The mine is expected to begin production in 2028, initially delivering 200,000 tonnes of copper annually in its first stage before expanding to 400,000 tonnes per year.

Credit: Barrick Mining

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A recent feasibility update increased stage one throughput from 40 million to 45 million tonnes per year, with costs rising to $5.6 billion from earlier estimates of $4 billion. Stage two aims to process 90 million tonnes annually, up from 80 million. While the mine’s current operating life is pegged at 37 years, Barrick says upgrades and exploration could extend operations for decades beyond.

International interest 

The financing push aligns with Islamabad’s efforts to attract foreign investment into its mining sector, including rare earths, and comes amid a thaw in relations with Washington.

U.S. Secretary of State Marco Rubio recently highlighted critical minerals as a new area of cooperation, noting potential U.S.-Pakistan joint ventures. Pakistan’s commerce ministry has indicated that American firms will be offered lease concessions and joint venture opportunities in Balochistan.

For Pakistan, Reko Diq is not just a mining project but a potential catalyst for wider investment in the country’s resource-rich Balochistan province. For the U.S. and its allies, participation in the project supports efforts to diversify critical mineral supply chains away from China.