In a significant development, a formal feasibility study has confirmed that the Reko Diq project in Balochistan holds copper and gold reserves worth over $60 billion at current prices. This project is expected to be a game-changer for Pakistan’s economy, providing a much-needed boost to the country’s mining sector.
The Reko Diq project is a joint venture between the Government of Pakistan, the Government of Balochistan, and Barrick Gold Corporation. The project is expected to produce 13.1 million tons of copper and 17.9 million ounces of gold, with a total value of over $60 billion. This makes it one of the largest copper and gold projects in the world.
The feasibility study has also confirmed a 25% return on investment, making it an attractive project for investors. The project will be operated entirely on solar energy, making it the only green project of its kind in the world. This is a significant development, as it will help reduce the project’s carbon footprint and make it more environmentally friendly.
The project plans to process 45 million tons of mill feed per annum (MTPA) from 2028, with plans to double the capacity to 90 MTPA in Phase 2 by 2034. The project has a 37-year mine life span, divided into two phases, with the first phase estimated at $5.6 billion.
Three state-owned energy companies, Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings (Pvt) Limited (GHPL), have more than doubled their funding pledges to $1.9 billion, up from an initial $900 million. This increased funding will help support the project’s development and ensure its successful completion.
The Reko Diq project is a significant milestone in Pakistan’s journey towards unlocking one of the world’s largest undeveloped copper and gold resources. The project is expected to provide a significant boost to Pakistan’s economy, creating jobs and generating revenue for the government.
In a statement, OGDCL announced that the company’s shareholders’ equity contribution, taking into account the project financing, is expected to be $349 million. This will be adjusted for the actual project financing cost and inflation. PPL also announced that its board of directors has approved an increase in its funding commitment for the project, taking its share of the total investment to $627 million.
The Reko Diq project is a shining example of what can be achieved through collaboration and investment in Pakistan’s mining sector. As the project moves forward, it is expected to provide a significant boost to Pakistan’s economy and help unlock the country’s vast mineral resources.
In conclusion, the Reko Diq project is a game-changer for Pakistan’s economy, providing a significant boost to the country’s mining sector. With its vast copper and gold reserves, the project is expected to generate significant revenue for the government and create jobs for thousands of people. As the project moves forward, it is expected to play a significant role in unlocking Pakistan’s vast mineral resources and promoting economic growth and development.
