Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL), two of Pakistan’s leading exploration and production firms, have each approved a funding commitment of $627 million for the Reko Diq copper-gold mining project. This decision follows an updated feasibility study indicating a 37-year mine life, divided into two phases.

In Phase 1, set to commence production by 2028, the project aims to process 45 million tonnes of mill feed annually. Phase 2, expected to begin by 2034, will double the processing capacity to 90 million tonnes per annum. The total capital investment for Phase 1 is estimated at $5.6 billion, excluding financing costs and inflation. Funding for this phase will include up to $3 billion through limited-recourse project financing, with the remainder covered by shareholder contributions.

OGDCL and PPL each hold an 8.33% stake in the Reko Diq project, contributing to the collective 25% ownership by three Pakistani state-owned enterprises, including Government Holdings (Private) Limited. The remaining ownership is divided between the Government of Balochistan (25%) and Barrick Gold Corporation (50%), which operates the mine.

The Reko Diq project is projected to produce approximately 13.1 million tonnes of copper and 17.9 million ounces of gold over its lifespan. The recent rise in copper and gold prices has positively influenced the project’s financial outlook, offsetting higher project costs.

These funding approvals mark a significant step forward in developing one of the world’s largest underdeveloped copper-gold deposits, promising substantial economic benefits for Pakistan.