Barrick Gold Corporation is turning to the United States and other major international lenders to secure up to $3.5 billion in funding for the Reko Diq copper and gold mine in Pakistan’s Balochistan province. The move comes after negotiations with Saudi Arabia over a potential investment stake fell through, prompting the company to pursue a broader financing strategy involving G7 nations and leading development banks.
G7-Backed Financing Strategy
Mark Bristow, Barrick’s chief executive, revealed in an interview that the company is working on a G7-country financing package for the $9 billion project. According to the Financial Times, discussions are already underway with key institutions, including:
World Bank’s International Finance Corporation (IFC)
US Export-Import Bank
US International Development Finance Corporation (DFC)
Asian Development Bank (ADB)
Lenders from Germany, Canada, and Japan
“There is a lot of interest to support Pakistan,” Bristow said, noting that Reko Diq has “focused a spotlight” on the region’s economic potential.
Project Costs and Ownership Structure
The first phase of the Reko Diq mine is scheduled to begin production in 2028 and is expected to cost $6.6 billion. Under the agreement, Barrick Gold will own 50% of the project, while Pakistan’s federal and Balochistan provincial governments will jointly hold the remaining stake.
Both sides are expected to invest between $1.5 billion and $1.8 billion each. The remaining capital—approximately $3 billion to $3.5 billion—will be raised through international limited recourse financing, a model that limits the lenders’ claims to project revenues rather than broader company assets.
“It’s a perfect situation where Pakistan is investing alongside us, 50-50,” Bristow explained. “We bring the skills and we’re the operators, and then we’re gearing it with international financing.”
Collapse of Saudi Investment Talks
The financing push follows the breakdown of discussions with Manara Minerals, a Saudi state-owned mining fund, which had considered acquiring up to 20% of the Reko Diq project. While earlier reports suggested that Saudi Arabia’s Public Investment Fund (PIF) might still be involved, Bristow clarified to Reuters that Barrick is not acting as an intermediary between Saudi and Pakistani authorities.
Geopolitical Importance of Reko Diq
The Reko Diq project holds strategic significance amid rising global competition for critical minerals. The mine is expected to produce large volumes of copper concentrate, a crucial component for renewable energy technologies, electric vehicles, and military hardware.
Bristow noted that any US government funding could come with provisions granting the US access to the mine’s copper output. However, he highlighted a key logistical hurdle: the US currently lacks enough domestic smelting capacity to process the concentrate into usable metal. “The challenge for the US is smelting capacity—it’s all spoken for,” he said, adding that expanding smelting infrastructure would help reduce dependence on Chinese imports.
US and Western Push for Mineral Security
The drive to secure critical minerals has become a foreign policy priority for the US and other Western nations. Former President Donald Trump, among others, has emphasized the importance of reducing reliance on foreign—particularly Chinese—sources for essential metals. Given its scale and projected output, Reko Diq could become a central pillar in Western strategies to diversify supply chains.
Gold Market Outlook
In a separate comment on the global gold market, Bristow said the World Gold Council is awaiting clarity on possible US tariffs on gold bars. He downplayed the potential impact on mining companies, pointing out that miners are “price takers” and would not be significantly affected by such policy shifts.
Opportunity for Pakistan’s Mining Sector
Beyond its geopolitical implications, the Reko Diq project represents one of the largest foreign investment opportunities in Pakistan’s history. If completed as planned, it could generate thousands of jobs, boost government revenues, and position Pakistan as a key supplier of copper and gold to the global market.
With the Saudi deal off the table, Barrick’s outreach to US and global lenders marks a decisive step toward ensuring the project’s financial stability. Whether this strategy succeeds could determine not just the fate of Reko Diq, but also Pakistan’s standing in the international mining sector.
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