‘Immense national importance’: ECC assures full support for Reko-Diq project

The Economic Coordination Committee (ECC) has assured full support for the Reko-Diq project in Balochistan province, calling it of “immense national importance”, according to a statement from the Finance Division.

The development comes as Finance Minister Muhammad Aurangzeb chaired the ECC meeting virtually from China where he was attending the Boao Forum for Asia 2025.

“The ECC took up a summary by the Petroleum Division regarding the Reko-Diq project and changes in its overall development plan and related financial commitments and project finance considerations due to inflation and enhanced scope of the project concerning capacity, energy mix, alternative water supply options and updated processing plants and machinery.

“The ECC noted the factors leading to the project escalations, and approved the proposals contained in the summary with the directions to the Ministries of Petroleum & Finance to continue close coordination with a view to ensuring timely implementation of all agreed actions. The ECC assured full support for the Reko-Diq Project, calling it a project of immense national importance,” the Finance Division said.

The Reko Diq project is regarded as one of the world’s largest undeveloped copper and gold deposits, presenting significant economic opportunities for Pakistan.

Earlier during the day, the Oil and Gas Development Company Limited (OGDCL) announced the approval of an increase in its funding commitment towards the Reko Diq project to $627 million.

“The Board of Directors of the company has approved an increase in the company’s funding commitment with respect to the project, reflecting its pro rata share of total capital investment, inclusive of project financing costs, to $627 million (to be adjusted for actual project financing costs and inflation),” read its notice to the Pakistan Stock Exchange.

Barrick’s gold reserves rise in 2024 on Reko Diq project

It is pertinent to mention that OGDCL’s share of the Reko Diq project represents 8.33% as part of the collective 25% held by the three Pakistani State-Owned Enterprises (SOEs) including Pakistan Petroleum Limited and Government Holdings (Private) Limited.

The interest of the SOEs is held 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.