The Asian Development Bank approved a $410 million financing package for Pakistan’s massive Reko Diq copper mine, which will become the world’s fifth largest copper operation when complete, ADB announced. The project in Balochistan province represents Pakistan’s biggest foreign direct investment ever and will produce 800,000 tons of copper concentrate annually starting in late 2028.
ADB is putting up $300 million in senior loans to the mining company plus a $110 million guarantee covering the provincial government’s equity stake. Copper is crucial for electric vehicles, renewable energy systems, smartphones, and data centers as the world shifts toward clean technology. The mine will operate for at least 37 years and create thousands of jobs in Pakistan’s poorest province.
Balochistan has been largely left out of Pakistan’s economic development despite holding many of the country’s mineral resources. The Chagai district where Reko Diq sits is particularly underdeveloped, with limited infrastructure and few economic opportunities. The copper deposit has been known for years but previous attempts to develop it fell apart due to legal disputes and political problems. This new arrangement tries to ensure fair benefit-sharing between international investors and Pakistani stakeholders.
The Reko Diq Mining Company is a joint venture with Canada’s Barrick Mining Corporation owning 50 percent and building the operation. The Government of Balochistan holds 25 percent through its mineral company, while three federal state-owned enterprises split the remaining 25 percent. Construction of the open pit mine and processing plant started this year with production scheduled for late 2028. ADB President Masato Kanda said the project is “a game-changer for Pakistan, creating quality jobs and underpinning the nation’s transition toward a more resilient and diversified economy.”
The mine will help address a projected global copper shortage as demand soars for electric vehicles and renewable energy infrastructure. Copper is essential for wind turbines, solar panels, electric car batteries, and charging networks needed for the clean energy transition. The project includes social development programs for healthcare and education, with special focus on women and local communities. ADB requires strict environmental and social standards for all projects it funds.
See also: Top 10 largest copper-producing countries
For development finance and mining policy experts, this deal shows how multilateral banks can help unlock private investment in critical mineral projects that serve climate goals. The innovative financing structure with loans and guarantees helps reduce risks that often scare away investors from frontier markets. Pakistan desperately needs foreign investment and export earnings, making this project potentially transformative for the country’s economy. The focus on equitable benefit-sharing and community programs reflects lessons learned from mining projects that created wealth but left local people behind.
