Archive · 23 Sep 2025
Pakistan Approves $7.7 Billion Reko Diq Mining Project
Pakistan is moving forward with a big mining project called Reko Diq, which could bring in a lot of money.
The project will cost over $7 billion, with some of that as loans.
It's expected to start producing copper and gold by the end of 2028.
The project is expected to generate significant revenue, including money for the government and local communities.
However, some experts worry about the increasing costs and the amount of debt the project will take on, so it's still a gamble.
Pakistan approved the first phase of the Reko Diq copper-gold project, with a budget of $7.723 billion.
The ECC endorsed agreements between state-owned entities and project lenders.
Project debt has increased to $3.5 billion, raising shareholder commitments.
Phase-I is expected to produce its first concentrate by the end of 2028.
Analysts are concerned that rising costs and debt could create financial challenges.
- Who
- Pakistan and stakeholders.
- What
- Approval of $7.7 billion Reko Diq copper-gold mining project.
- When
- Financial agreements signed within two weeks, production by 2028.
- Where
- Balochistan, Pakistan.
- Why
- To begin operations of a major copper-gold mining venture.
Supporters
Critics
Project Viability
Supporters
Views Reko Diq as a source of significant economic returns.
Critics
Express concern that costs and debt could lead to financial challenges.
- Project Cost
- $7.723 billion
- Revised Debt
- $3.5 billion
- Phase-I Production
- By end of 2028
- Mine Life
- 37 years
- Operating Cash Flows
- $90 billion projected
- Local Currency Share
- 35% of project cost
