The United States has committed $1.3 billion to Pakistan’s Reko Diq copper-gold mining project in Balochistan province, marking a major foreign investment in one of the world’s largest undeveloped mineral deposits.
The US Export-Import Bank announced the investment as part of its newly launched “Project Vault,” a strategic initiative designed to secure critical mineral supply chains for resources essential to renewable energy, electric vehicles and defence applications.
The investment comes against a backdrop of escalating violence in Balochistan, where Pakistan’s military recently concluded a week-long security operation following province-wide attacks by the Balochistan Liberation Army.
The military operation resulted in the deaths of 216 rebels, 36 civilians and dozens of security personnel.
The timing underscores the significant security challenges facing foreign investors in the mineral-rich but politically volatile region.
The Reko Diq project, located near the Pakistan-Iran border, is being developed by Barrick Gold in partnership with the Pakistan government and Balochistan provincial authorities.
Reko Diq represents one of the largest copper and gold reserves in the world, with estimated reserves of 5.9 billion tonnes of ore grading 0.41 per cent copper and gold reserves amounting to 41.5 million ounces, with a mining life of at least 40 years.
Based on prevailing market prices, officials estimate the total value of the projected yield would exceed $60 billion, comprising around $54 billion in gold and $6 billion in copper.
The fresh US investment is expected to support mine development, infrastructure creation and local employment while boosting Pakistan’s export potential.
During peak construction the project is expected to employ 7,500 people, creating 4,000 long-term jobs during the mine’s expected 40-year life, with production expected to begin in 2028.
When fully complete, Reko Diq is expected to be the world’s fifth largest copper mine, producing on average 800,000 tonnes of copper concentrate per annum.
The investment carries geopolitical significance, coming amid increased global competition over critical minerals and Washington’s efforts to diversify supply chains away from China.
The Reko Diq investment stands out as the sole foreign investment under Project Vault, underscoring the deposit’s global strategic importance.
However, Pakistan has dealt with a separatist movement in Balochistan for decades, with violence surging in recent years as armed groups resist exploitation in the resource-rich province abundant in coal, gold, copper and gas.
The security situation has raised concerns amongst potential investors about the feasibility of large-scale mining operations in the region.
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