Barrick seeks $3.5B global financing for Pakistan鈥檚 Reko Diq mine, eyes 2028 output amid mineral competition, geopolitical interest, and legal disputes.
Canadian mining major Barrick Mining is actively seeking to secure $3.5 billion in funding from global lenders, including U.S.-backed financial institutions, to advance the development of the Reko Diq copper and gold mine in Pakistan鈥檚 Balochistan province, according to a report by the Financial Times. The push for financing comes after earlier negotiations for Saudi Arabian investment failed to yield an agreement.
Chief Executive Mark Bristow confirmed that Barrick is assembling a financing package with participation from lenders in G7 countries. The institutions approached include the World Bank鈥檚 International Finance Corporation (IFC), the U.S. Export-Import Bank, the U.S. International Development Finance Corporation (DFC), the Asian Development Bank (ADB), and financial entities in Germany, Canada, and Japan. Bristow emphasized that there is substantial international interest in supporting Pakistan, adding that the massive $9 billion project has 鈥渇ocused a spotlight鈥� on the region鈥檚 strategic significance.
The first phase of the Reko Diq development is projected to cost $6.6 billion. Ownership is equally split between Barrick (50%) and the Pakistani federal and provincial governments (50%). Both parties will contribute between $1.5 billion and $1.8 billion each, while the remainder will come from the planned international financing. 鈥淚t鈥檚 a perfect situation where Pakistan is investing alongside us, 50-50,鈥� Bristow said. 鈥淲e bring the operational expertise and manage the project, and then we leverage it with international limited recourse financing.鈥�
Previously, Barrick held discussions with Saudi Arabia鈥檚 Manara Minerals, which had considered acquiring a 20% stake in Reko Diq. However, those talks ended without a deal. The mine is scheduled to begin production in 2028, at a time when competition for critical minerals鈥攙ital for energy infrastructure and defense technology鈥攊s intensifying worldwide.
The project鈥檚 geopolitical weight has grown, particularly for the United States, which is working to strengthen mineral supply chains amid concerns about China鈥檚 dominance in refining capacity. Bristow noted that any U.S. participation in financing could grant it access to Reko Diq鈥檚 copper concentrate, though the U.S. currently lacks adequate domestic smelting facilities to process the ore. 鈥淭he challenge for the U.S. is smelting to capacity鈥攊t鈥檚 all spoken for,鈥� he said. 鈥淚f the U.S. wants to reduce dependence on Chinese imports, it needs more domestic smelters.鈥�
Meanwhile, Barrick faces legal headwinds elsewhere. In Mali, its Loulo-Gounkoto gold mine has been under court-appointed administration since June, due to a dispute with the military government over new mining legislation enacted in 2023. The company has filed for international arbitration through the World Bank鈥檚 International Centre for Settlement of Investment Disputes (ICSID).
Bristow, who has previously leveraged arbitration successfully in Pakistan and Tanzania, expressed confidence in the process. He cautioned against accepting unfavorable settlements, saying that investors expect Barrick to uphold firm principles in its agreements. The company recently posted second-quarter net earnings of $811 million, a 33% increase from the previous year, supported by record-high gold prices.
