ISLAMABAD: The Oil 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’s journey toward unlocking one of the world’s largest undeveloped copper-gold resources.
The OGDCL holds an 8.33 per cent share in the project as part of a collective 25 per cent stake held by three Pakistani state-owned enterprises (SOEs), including Pakistan Petroleum Limited (PPL) and Government Holdings (Private) Limited (GHPL).
The SOEs’ interest is managed through Pakistan Minerals (Private) Limited. Of the remaining share, 25 per cent is held by the Government of Balochistan (15 per cent on a fully-funded basis through Balochistan Mineral Resources Limited and 10 per cent on a free carried basis) and 50 per cent is held by Barrick Gold Corporation, which is the operator of the project.
The 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.
The 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).
Under 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 per cent basis).
In light of these developments, the Board of Directors of OGDCL has approved an increase in the company’s 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).
The 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.
Copyright Business Recorder, 2025
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