Pakistan and Canada are enhancing their cooperation in the minerals and energy sectors as Pakistan moves forward with the development of the Reko Diq copper-gold mine, one of the largest undeveloped mineral deposits globally.
Progress in Reko Diq Project
Efforts to revive the long-delayed Reko Diq mining project have gained momentum with significant steps including multilateral financing arrangements involving international banks and institutions. A notable contract includes a $440 million deal with Japan’s Komatsu for mining machinery, signaling readiness to begin construction activities in 2026.
International Support and Financing
Last month, the United States approved $1.25 billion in financing through the US Export-Import Bank for the Reko Diq project. This financing package is expected to facilitate up to $2 billion in US equipment and service exports related to the mine.
Production Outlook and Economic Impact
Production at the mine is projected to start by late 2028, with anticipated annual outputs of approximately 200,000 tons of copper alongside significant gold yields once operations are fully scaled. The project is a key component of Pakistan’s strategy to boost economic growth by developing its mining sector.
Strategic Importance for Pakistan
Pakistan is actively positioning mining as a cornerstone of its economic recovery plan. The government is hosting international mineral investment forums, pursuing partnerships with Western and Gulf countries, and signing cooperation agreements on critical minerals, including with the United States.
Officials view large-scale mining projects like Reko Diq as vital for increasing exports, generating foreign exchange earnings, and creating employment opportunities amid ongoing economic challenges.
