US, global banks in talks to fund $3.5 billion for Pakistan’s Reko Diq project after Saudi exit

Barrick Gold is shifting its funding strategy for the Reko Diq copper and gold mine, now seeking up to $3.5 billion from the US and other global lenders after a potential deal with Saudi Arabia fell through.

Chief Executive Mark Bristow told the Financial Times the company is working on a financing package backed by G7 nations for the $9 billion mega-project in Balochistan. Discussions involve heavyweight financiers, including the World Bank’s IFC, the US Export-Import Bank, the US Development Finance Corporation, the Asian Development Bank, and lenders from Germany, Canada, and Japan.

Bristow highlighted strong international interest, calling Reko Diq a “spotlight project” for Pakistan. The mine’s first phase — costing $6.6 billion — is slated to start production in 2028. Barrick and Pakistan’s federal and provincial governments will each hold 50% ownership, investing up to $1.8 billion apiece. The rest will be raised from foreign lenders.

Talks with Saudi Arabia’s Manara Minerals, which had considered buying a 20% stake, ended without agreement. Bristow also made clear that Barrick is not brokering any deal between Saudi and Pakistan.

Beyond its economic promise, Reko Diq carries strategic weight. It will produce significant copper concentrate, vital for clean energy and military technology. Any US financing could help secure supply, but Bristow warned the US faces a bottleneck in processing capacity, with most global smelting dominated by China.

The pursuit of critical minerals is now a foreign policy priority for Washington and its allies. For Pakistan, securing this investment could mean a turning point for its mining sector, boosting both economic growth and international partnerships.