PM Orders Rail Link for Reko Diq Project by 2028

In a significant initiative aimed at fostering economic progress and improving cargo transportation infrastructure, Prime Minister Shehbaz Sharif has instructed that the Reko Diq mining venture in Balochistan be connected to the Pakistan Railways network by the year 2028.

The announcement occurred during a top-tier meeting presided over by the Prime Minister. Senior members of the cabinet, including Deputy Prime Minister and Foreign Minister Ishaq Dar, Defence Minister Khawaja Asif, alongside other federal ministers, were present.

The Reko Diq project, recognized as one of the world’s most substantial untapped reserves of copper and gold, is projected to yield approximately $90 billion in operational cash over its lifespan.

Barrick Gold, a Canadian mining corporation, possesses a 50% stake in the project, while the remaining ownership is divided between the federal and Balochistan governments.

Sharif commented, “This initiative will stimulate the mines and minerals sector of Balochistan and generate fresh job opportunities for the local populace.”

He characterized Pakistan Railways as the foundation of the nation’s economy and communication infrastructure, emphasizing its affordability, swiftness, and ecological advantages.

The envisioned railway connection is anticipated to necessitate upgrades to crucial segments of the network, notably the Main Line-1 (ML-1) and Main Line-3 (ML-3), to manage forthcoming freight traffic originating from the mine.

An inter-ministerial committee has been entrusted with formulating a financial strategy and execution blueprint for the railway undertaking.

Furthermore, it will oversee infrastructure expansion to guarantee the network’s readiness to accommodate large-scale mineral conveyance once the mine commences operations.

Globally, there’s increasing interest in Reko Diq.

Earlier this year, Manara Minerals of Saudi Arabia conveyed intentions to procure a 10-20% stake in the project, potentially investing sums between $500 million and $1 billion.

In April, stakeholders sanctioned an updated feasibility assessment and granted preliminary endorsement for Phase-1 development, contingent on securing up to $3 billion in capital.

The Prime Minister’s directive underscores a revived emphasis on utilizing the nation’s mineral assets to stimulate economic advancement, particularly in underdeveloped regions such as Balochistan.