The world’s fifth-largest greenfield copper and gold mine project in Balochistan, the Reko Diq mine, has applied for a loan of $100 million from the US Export-Import (EXIM) Bank. This application comes just after the company secured over $400 million from the Asian Development Bank (ADB) and around $450 million from the World Bank’s International Finance Corporation (IFC).

Pak to be key player in mineral supply

The company is owned by Barrick Gold Corporation, the Canada-based mining giant, which holds a 50 percent stake, while the remaining shares are divided equally (25 percent each) between the Government of Balochistan and state-owned enterprises. This major loan signals that Pakistan is set to become a key player in the global critical minerals supply chain.

With copper demand far outstripping supply, the project is expected to draw the attention of US President Donald Trump and his administration, who are prioritizing critical minerals and renewable energy technologies.

US EXIM Bank talks of the loan request

In a disclosure, the US EXIM Bank stated that the Reko Diq Mining Company has applied for “long-term loans or financial guarantees in excess of $100 million.” The bank has invited public comments on the application within 26 days, after which its board of directors will make the final decision.

The loan will be used to import mining equipment such as crushers, solar panels, trucks, and consulting services from the United States.

US faces setback

The loan application comes at a time when the US copper industry is facing setbacks. A federal appeals court recently temporarily halted a land transfer critical for launching an Arizona copper project that could become one of the largest in the US. Reacting to the ruling, Trump argued in a social media post that opponents of the mine were serving the interests of “other copper competitive Countries.”

On August 22, the ADB board announced $300 million in loans to the Reko Diq Mining Company, calling it “the largest foreign direct investment in Pakistan’s history.”

This year India has produced just 30,000 metric tons of copper — which is 0.1% of global output — and the contribution globally is just 2%. The only copper miner in India is Hindustan Copper Ltd.

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