The Oil and Gas Development Company Limited (OGDCL) has announced the successful completion of the updated feasibility study for the Reko Diq project, marking a crucial step toward developing one of the world’s largest undeveloped copper-gold reserves in Pakistan.
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OGDCL holds an 8.33% stake in the project as part of a 25% collective share owned by three Pakistani State-Owned Enterprises (SOEs), including Pakistan Petroleum Limited (PPL) and Government Holdings (Private) Limited (GHPL). These entities manage their interests through Pakistan Minerals (Private) Limited. The remaining ownership includes a 25% stake by the Government of Balochistan—with 15% funded through Balochistan Mineral Resources Limited and 10% on a free-carried basis—while Barrick Gold Corporation, the project’s operator, holds a 50% stake.
The feasibility study outlines a mine life of 37 years, divided into two phases. Phase 1 requires an estimated $5.6 billion in capital investment (excluding financing costs and inflation) and is scheduled to begin operations in 2028. A limited-recourse project financing facility of up to $3 billion is currently under negotiation, with the remaining funding to come from shareholder contributions.
The project will initially focus on five out of the 15 identified porphyry surface expressions within the current mining lease, showcasing significant future expansion potential. Phase 2 is expected to be funded through a combination of project revenue, additional financing, and shareholder contributions if required.
With the Reko Diq project positioned as a key driver of Pakistan’s mineral sector growth, this milestone marks a major advancement in harnessing the country’s natural resources while attracting foreign investment and economic development.
