The Oil and Gas Development Company (OGDC) board has greenlit a $627 million investment hike for the Reko Diq project in Balochistan’s Chagai district.
The funding, which was approved on Tuesday, follows an updated feasibility study. It represents OGDC’s 8.33% share in the multi-billion dollar copper-gold mine, part of a 25% stake held by three Pakistani state firms, along with Pakistan Petroleum Limited and Government Holdings.
The study estimates that Phase I’s costs will be $5.6 billion, with operations set to begin in 2028. Rising copper and gold prices justify the increase in costs, which helps offset expenses.
OGDC’s equity share is valued at $349 million, subject to financing adjustments. Barrick Gold owns 50%, while Balochistan holds a 25% stake. Discussions are underway for a $3 billion loan, with the remaining costs to be covered by the shareholders.
Reko Diq Project Funding Unlocks Potential
The 37-year mining plan begins with an annual extraction of 45 million tonnes, increasing to 90 million tonnes by 2034. This project is expected to yield 13.1 million tonnes of copper and 17.9 million ounces of gold.
Read: Saudi Arabia Buys 15% Stake in Pakistan’s Reko Diq Mine
The funding milestone for the Reko Diq project is set to enhance Pakistan’s economy by creating jobs and increasing revenue, as it taps into one of the world’s largest mineral reserves..
