Reko Diq Project Receives $627 Million Funding Boost
The increased investment in the Reko Diq project is expected to offset higher project costs and ensure the project's viability, with the rise in copper and gold prices providing a boost to the project's economic prospects, and the government's support ensuring timely implementation of the project's development plan.
The Oil and Gas Development Company has approved a significant increase in funding for the Reko Diq copper and gold mining project, with an additional $627 million allocated to support the project's development, following the completion of an updated feasibility study that takes into account the rise in copper and gold prices.
The project, located in Chagai, Balochistan, is expected to generate substantial long-term economic benefits for Pakistan, create jobs, and increase revenue streams. The feasibility study outlines a 37-year mine life, divided into two phases, with phase-I set to commence operations in 2028 and phase-II planned to double processing capacity by 2034. Over its life span, the project is expected to produce 13.1 million tonnes of copper and 17.9 million ounces of gold.
The project is a joint venture between Pakistani state-owned enterprises, the government of Balochistan, and Barrick Gold Corporation, with OGDC holding an 8.33% shareholding. The Economic Coordination Committee (ECC) has assured full support for the project, recognizing its "immense national importance" and approving proposals for changes in its development plan and financial commitments due to inflation and project scope enhancements.
The Reko Diq project is one of the world's largest undeveloped copper and gold deposits, offering significant economic opportunities for Pakistan. With the increased funding and support from the ECC, the project is poised to make a substantial contribution to the country's economy and development, and its successful implementation is expected to have a positive impact on the region.