Equipment, services for Reko Diq project: US EXIM financing to bring in USD2bn, says US DCM Baker

ISLAMABAD: US Deputy Chief of Mission (DCM) and Acting Ambassador to Pakistan, Natalie A. Baker, on Wednesday said the recently-approved USD1.25 billion financing from the US Export-Import (EXIM) Bank for the Reko Diq project would bring up to USD2 billion in high-quality US mining equipment and services to support its development.

In a video statement posted on X, Baker highlighted the recently announced USD1.25 billion financing package from the US EXIM Bank for the RekoDiq copper-gold mine in Balochistan.

She expressed optimism about future collaborations between US and Pakistani companies, particularly in the critical minerals and mining sectors.

She described the RekoDiq project as a crucial step towards creating “employment and prosperity for both our nations.”

The financing, she explained, will provide essential equipment and services for the project over the coming years, generating an estimated 6,000 jobs in the United States and 7,500 jobs in Pakistan.

She emphasised that the RekoDiq mine would serve as a model for future mining projects, benefiting both US exporters and local Pakistani communities.

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“This financing will support the import of American-made mining technology, machinery, and operational services,” she said, adding that the project would help drive growth in both countries.

Baker also pointed out that the initiative aligns with the Trump administration’s broader foreign policy, which prioritises commercial partnerships. “The Trump administration has made deals like this central to American diplomacy,” she stated.

The RekoDiq project, developed by Barrick Gold in partnership with Pakistan’s federal and provincial governments, is expected to initially produce 200,000 metric tonnes of copper annually, with production slated to double in later phases.

Over its lifetime, the project has the potential to generate more than USD70 billion in free cash flow, making it one of the most profitable mining ventures globally.

Baker underscored that the project is about more than just copper and gold. “It’s about tapping into Pakistan’s vast potential in critical minerals, which are essential for electric vehicles, renewable energy, and sustainable industries worldwide.”

In addition to job creation, the mine is expected to generate USD2.8 billion in export revenues during its first year, nearly 10% of Pakistan’s total exports. This will provide a substantial boost to Pakistan’s economy, reduce its trade deficit, and attract further foreign investment.

Beyond US support, the project also benefits from backing by the International Finance Corporation (IFC) and the Asian Development Bank (ADB), contributing to a total financing package of over USD2.6 billion.

Copyright Business Recorder, 2025