ISLAMABAD
Marking a key breakthrough for Pakistan’s mining sector, Reko Diq Mining Company (RDMC) has secured over $5.5 billion in financing commitments from international financial institutions (IFIs), surpassing its actual funding requirement of $3.74 billion, The News reported on Wednesday.
The $7.48 billion project located in Balochistan’s Chagai district is being developed under a 50:50 debt-to-equity model and is expected to commence construction in December 2025, with commercial operations targeted for 2028.
The US Export-Import Bank (EXIM) has committed approximately $1 billion, while the Japan Bank for International Cooperation (JBIC) has agreed to provide $300 million.
Denmark’s export credit agency has also offered guarantees to support commercial bank financing or equipment procurement for the project.
According to senior relevant officials, only the most favourable loan terms will be selected from the $5.5 billion in commitments, which are said to be significantly more lenient than standard commercial loans. Financial closure is expected by the end of September or early October 2025.
The RDMC has also expressed readiness to provide bridge financing of $400 million to support the construction of railway infrastructure linking the mine site to Port Qasim via Main Line-2 (ML-2) and Main Line-3 (ML-3).
The timely completion of these railway lines is seen as critical for the efficient transport of extracted minerals. The railway upgrade is expected to be completed before the mine becomes operational in 2028.
The Reko Diq project is projected to generate $74 billion in free cash flows over its 37-year operational life, positioning it as a cornerstone of Pakistan’s long-term economic strategy.
