IFCs $300m commitment sets stage for $2bn drive into Reko Diq revival

The World Bank’s private investment arm, the International Finance Corporation (IFC), will inject $300 million worth of financing into Pakistan’s Reko Diq copper-gold mining project, as per a disclosure from the lender.

Located in the Chagai District of Balochistan province, the mine is considered one of the world’s largest underdeveloped copper-gold areas and its development is expected to have a significant impact on Pakistan’s struggling economy.

Barrick Gold owns a 50% stake in the Reko Diq mine, and the governments of Pakistan and Balochistan own the other 50%.

The mine’s Project Director, Tim Cribb, told Reuters on Tuesday that Barrick Gold’s Reko Diq copper and gold project in Pakistan intended to lock in upwards of $2 billion in financing from international lenders, with term sheets signed by early Q3.

In an interview with Reuters at the Pakistan Minerals Investment Forum 2025, Cribb said the mine was looking at $650 million from the International Finance Corporation and International Development Association.

Cribb further said that the funding would support the development of the mine, and hoped to generate $70 billion in free cash flow and $90 billion in operating cash flow.

Barrick Gold and the governments of Pakistan and Balochistan own the project jointly. The financing for phase one of the project, which is expected to start production in 2028, is being discussed with multiple lenders.

The Reko Diq project director added that the mine was also in talks with the US Export-Import Bank for $500 million to $1 billion in financing, as well as $500 million from development finance institutions, including the Asian Development Bank, Export Development Canada, and Japan Bank for International Cooperation.

He said railway financing talks were underway with the IFC and other lenders, with infrastructure costs estimated at $500-800 million, with roughly $350 million as the initial cost.

A recent feasibility study has upgraded the project’s scope, with phase one throughput increasing to 45 million tons per annum from 40 million, and phase two throughput rising to 90 million tons per annum from 80 million.

The mine life has been revised from 42 years to 37 years due to the rising throughput, although the company believes unaccounted-for minerals could extend the life to 80 years. The cost of phase one has also been revised upwards to $5.6 billion from $4 billion.

The World Bank plans to invest $2 billion annually in Pakistan’s infrastructure over the next decade.

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