Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX) is planning to raise up to $3.5 billion from U.S. and international lenders to advance the development of a major copper-gold mine in Pakistan. This financing initiative comes after long-promised funding from Saudi Arabia failed to materialize as expected.
On August 11, CEO Mark Bristow revealed that the company is currently structuring a “G7 financing package” for the Reko Diq copper-gold project. Negotiations involve the International Finance Corporation (IFC, a World Bank affiliate), the U.S. Export-Import Bank, the U.S. International Development Finance Corporation, the Asian Development Bank, as well as lenders from Germany, Canada, and Japan. Bristow stated that many financial institutions have shown strong interest in supporting the project in Pakistan.
He further noted that with U.S. government backing, Pakistan would be able to access the mine’s copper concentrate, though further processing would still be required to produce usable metal. A key challenge for the U.S. lies in fully utilizing its smelting capacity. Bristow emphasized that this demand is now inevitable, and the U.S. urgently needs to expand domestic smelting capacity to reduce reliance on metal imports from China.
The Reko Diq copper-gold deposit is recognized as one of the world’s largest undeveloped copper-gold projects. It is projected to generate over $70 billion in free cash flow over 37 years, with $90 billion in operating cash flow throughout its mining life. The project is jointly owned by Barrick Gold, the Pakistani federal government, and the provincial government of Balochistan.
Currently, Phase 1 of the project is slated for production by 2028, and financing discussions are actively underway. Earlier this year, Project Director Tim Cribb stated that the mine is seeking $650 million from the IFC and the International Development Association, along with $500 million to $1 billion from the U.S. Export-Import Bank. Additionally, the project aims to secure another $500 million from other development finance institutions, including the Asian Development Bank, Export Development Canada, and the Japan Bank for International Cooperation.
