Reko Diq: Deal for world’s largest untapped copper, gold mine nears finish line

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The $7.765 billion Reko Diq Copper-Gold Project in Balochistan’s Chagai district, long delayed, is now poised to achieve financial closure.

Pakistan is sitting on the verge of unlocking one of the largest copper-gold reserves in the world — the Reko Diq Copper-Gold Project in Balochistan. More than just a mining venture, it is being seen as a long-term economic lifeline that could reshape the future of the province and contribute significantly to the national economy. 

According to officials who briefed the Senate Standing Committee on Petroleum, Pakistan is expected to earn around $53 billion over 37 years from the project. In addition, the project will directly create 7,500 jobs, most of which are expected to go to local residents from Balochistan, especially the Chagai district where Reko Diq is located. 

Massive Investment, Long-Term Returns 

The project is being developed in multiple phases, with a total investment in the billions of dollars: 

• Total estimated project value: $7.7 billion 

• Phase One: 

o Financial close, which is anticipated next month 

o Construction to begin in 2028 

o Financing required: around $3.5 billion 

o Total construction cost: $5.6–6 billion 

o Expected production: 260,000 tons of copper and 300,000 ounces of gold per year 

• Phase Two (from 2032): 

o Additional investment: $3–3.6 billion 

o Expected production increases to 400,000 tons of copper and 500,000 ounces of gold annually 

Over its life, the project is projected to generate a total cash flow of around $70 billion. Out of this: 

• Balochistan government is expected to receive $26 billion 

• Federal government around $11 billion 

• Three government entities collectively about $15 billion 

This means a substantial portion of the earnings will flow back into public coffers, giving both the province and federation long-term fiscal space. 

Read more: Japan’s JBIC joins Reko Diq lender group as Pakistan nears financial close on the project

Jobs, Training, and Local Uplift 

While the big numbers grab headlines, the project’s social impact on local communities may be even more meaningful in the long run. 

Officials shared that Reko Diq isn’t just about extracting minerals — it comes with a package of community development initiatives, including: 

• Provision of clean drinking water in nearby areas 

• Upgrades to primary schools to improve basic education 

• Skills training programs to prepare locals for technical and semi-skilled roles 

So far: 

• 380 residents of Chagai district have already completed vocational training 

• 27 students have been awarded scholarships to study abroad, with the expectation that they will return with advanced skills to contribute to the region’s development 

These steps aim to ensure that the people living closest to the mine are not left behind but instead become key beneficiaries of the project. 

Funding and Security Confidence 

On the financing front, officials confirmed that $2.5 billion in international funding has already been secured. Discussions are ongoing with major international financial institutions and partners, including: 

• World Bank 

• Asian Development Bank (ADB) 

• International Finance Corporation (IFC) 

• Governments of the United States and Japan 

These talks are focused on finalising the remaining financing required for the first phase. The involvement of such global players signals international confidence in the commercial viability and governance framework of the project. 

Read more: Pakistan secures $3.5 billion financing from global lenders for Reko Diq project

Importantly, officials reassured the Senate committee that there are no significant security concerns surrounding Reko Diq at present. This is crucial, as stable law and order is a key factor for sustained mining operations and continued foreign investment. 

A Strategic Test Case for Pakistan 

Reko Diq is not just a mine — it’s a test case for how Pakistan is capable of managing its natural resources. If executed well, it can provide various benefits listed below: 

• Strengthen investor confidence 

• Generate billions in export earnings 

• Create thousands of jobs 

• Bring lasting infrastructure and social development to an underdeveloped region 

For Balochistan, one of Pakistan’s most resource-rich yet economically deprived provinces, the project is offering a rare opportunity: to turn underground wealth into real improvements in lives, livelihoods, and local services. 

If this is managed with transparency, fairness, and continuity, Reko Diq could be capable of setting a new precedent in Pakistan’s resource-led growth story — one where local communities share the benefits of national assets, not just watch them leave in trucks and ships.