ISLAMABAD
\nbOil and Gas Development Company Limited (OGDCL) has announced the completion of the updated feasibility study for the Reko Diq Project, marking a significant milestone in Pakistan\u2019s journey toward unlocking one of the world\u2019s largest undeveloped copper-gold resources.
\nOGDCL holds an 8.33% share in the project as part of a collective 25% stake held by three Pakistani State-Owned Enterprises (SOEs), including Pakistan Petroleum Limited (PPL) and Government Holdings (Private) Limited (GHPL). The SOEs\u2019 interest is managed through Pakistan Minerals (Private) Limited. Of the remaining share, 25% is held by the Government of Balochistan (15% on a fully funded basis through Balochistan Mineral Resources Limited and 10% on a free carried basis) and 50% is held by Barrick Gold Corporation, which is the operator of the project.
\nThe updated feasibility study outlines a mine life of 37 years, divided into two phases. Phase 1 of the project entails an estimated capital outlay of USD 5.6 billion (exclusive of financing costs and inflation) and is expected to commence operations in 2028. A limited-recourse project financing facility of up to USD 3 billion is being pursued, with the remainder to be funded through shareholder contributions. Negotiations for the project financing are ongoing.
\nThe project will leverage five of the currently identified 15 porphyry surface expressions within the current mining lease, highlighting substantial future growth potential. Phase 2 is planned to be funded through a mix of revenue generation from the project, additional project financing and shareholder contributions (if required).
\nUnder the updated feasibility study, Phase 1 is planned to process 45 million tonnes of mill feed annually (Mtpa) from 2028. By 2034, Phase 2 is planned to double the processing capacity to 90Mtpa. Based on existing reserves, the Reko Diq project is expected to yield production of 13.1 million tonnes of copper and 17.9 million ounces of gold over the life of the mine (100% basis).
\nIn light of these developments, the Board of Directors of OGDCL has approved an increase in the company\u2019s funding commitment to USD 627 million, inclusive of project financing costs, reflecting its proportional share of total capital investment. This increase accounts for the estimated rise in copper and gold prices, which have helped offset higher project costs. The shareholder equity contributions by the Company after taking into account project financing are expected to be USD 349 million (to be adjusted for actual project financing costs and inflation).
\nThe completion of the feasibility study represents a major achievement for the Reko Diq Project, reinforcing its potential to generate long-term economic benefits, job creation, and enhanced revenue streams for Pakistan.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD bOil and Gas Development Company Limited (OGDCL) has announced the completion of the updated feasibility study for the Reko Diq Project, marking a significant milestone in Pakistan\u2019s journey toward unlocking one of the world\u2019s largest undeveloped copper-gold resources. OGDCL holds an 8.33% share in the project as part of a collective 25% stake held […]<\/p>\n","protected":false},"author":2,"featured_media":469256,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-469232","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n