Posted on 25 Aug 2025
The Asian Development Bank (ADB) on Friday approved $300 million in senior loans to the Reko Diq gold and copper mine in Pakistan, Kallanish learns.
The mine is owned by the Reko Diq Mining Company (RDMC), a joint venture between Canadian miner Barrick Gold (with a 50% ownership), the Balochistan government (25%), and three federal state-owned companies (25%).
Alongside the mining loan, ADB will provide a $110m partial credit guarantee to cover the Balochistan government’s equity component. This is the first mining project the bank is supporting under its new strategy designed to “help Asia and the Pacific capitalise on rising demand for materials essential to clean energy and digital technologies.”
The project’s financing represents Pakistan’s largest foreign direct investment, according to the bank. The move reflects a growing push to support critical minerals projects, with Western countries ramping up efforts to counter China’s dominance over mineral supply chains.
Located in the Chagai district of Balochistan, Reko Diq is expected to be the world’s fifth-largest copper mine at full capacity. It is anticipated to produce 800,000 tonnes/year of copper concentrate.
Work at the mine, including building and operating the open-pit mine and processing plant, commenced this year. First production is expected in late 2028.
In June, the World Bank too backed the project with a $400m subordinated loan through its private investment arm, the International Finance Corporation (IFC). Another $300m debt financing was previously committed by IFC.
However, the increased financial support for Reko Diq comes amid calls by civil society organisations to reconsider financing what they described as a “dangerous” project.
“Located in an intensely militarised region, where civic space is very closed and where reprisals against civil society actors have increased in recent months, this project risks exacerbating the insecurity of human rights defenders and contributing to environmental and social destruction,” write 36 civil society organisations in an open letter. “While we understand that copper is considered to be a critical mineral for the energy transition, extraction projects must also respect human and environmental rights.”
Source:Kallanish
