The International Finance Corporation (IFC) will extend a $400 million subordinated loan to support the development of Pakistan’s Reko Diq copper-gold mine.
According to media reports, this latest funding follows a $300 million commitment announced in April, raising IFC’s total investment in the project to $700 million.
Situated in Balochistan, Reko Diq is one of the world’s largest undeveloped copper-gold reserves. The project, with an estimated total cost of $6.6 billion, will be financed through a combination of debt and equity provided by a consortium of international lenders.
“Total project costs are estimated at $6.6 billion and will be financed using a mix of debt and equity,” IFC noted in its disclosure, adding that other lenders will contribute the remaining debt funding.
The $400 million loan is structured as subordinated debt, meaning it will be repaid after other senior loans. This higher-risk funding helps attract additional investors by absorbing some of the financial exposure upfront.
Several global financial institutions are expected to join the financing package, including the U.S. EXIM Bank, Asian Development Bank (ADB), Export Development Canada (EDC), and Japan Bank for International Cooperation (JBIC), project director Tim Cribb told Reuters in April. Term sheets are anticipated to be finalized by early Q3 2025.
IFC Managing Director Makhtar Diop previously stated the organization is “doubling down” on its investments in Pakistan, with a particular focus on infrastructure, energy, and natural resources.
The Reko Diq project is being developed by Barrick Gold Corporation, which holds a 50% stake. The remaining ownership is split between the federal government of Pakistan and the government of Balochistan.
Production is slated to begin in 2028. Barrick estimates the mine could generate up to $74 billion in free cash flow over its projected 37-year operational life.
