In a major economic breakthrough, the US Export-Import (EXIM) Bank has approved $1.25 billion in financing to support the mining and development of critical minerals at the Reko Diq copper and gold project in Balochistan, Pakistan. The announcement was made by the US Embassy through a post on X, highlighting that the financing is expected to significantly bolster economic growth in the region.
Reko Diq, one of the world’s largest undeveloped copper and gold deposits, is jointly owned by Barrick Gold Corporation (50%) and Pakistani stakeholders (50%), with commercial production scheduled to begin in 2028.
In a video message, US Chargé d’Affaires Natalie Baker stated that the new financing commitment would eventually lead to up to $2 billion worth of US mining equipment and services being supplied to build and operate the mine. The project is expected to generate 6,000 jobs in the US and 7,500 jobs in Balochistan, giving it substantial economic and strategic significance for both countries.
Baker noted that under the Trump administration, forging such economic deals has become central to US diplomacy, particularly in sectors like critical minerals that are essential to global supply chains.
The decision also aligns with EXIM Bank’s broader strategy, as its chair John Jovanovic announced plans to invest $100 billion to secure critical mineral, nuclear energy and LNG supply chains for the US and its allies. Pakistan is among the first countries included in this tranche of investments.
In recent months, US-Pakistan relations have experienced renewed momentum, especially in economic and security cooperation. In September, the US Strategic Metals (USSM) and Pakistan’s Frontier Works Organization (FWO) signed a $500 million MoU to advance collaboration in critical minerals. Subsequently, Pakistan delivered its first batch of rare earth elements to USSM in October, marking a milestone in bilateral trade in strategic resources.
This new financing from EXIM Bank further strengthens the growing partnership between the two nations, positioning Reko Diq as a flagship model for future mining and economic cooperation.
