Islamabad: The Asian Development Bank (ADB) has approved a $410 million financing package to help develop Pakistan’s massive Reko Dik copper and gold mine, a project expected to become the world’s fifth-largest copper mine upon completion. The site, located in Balochistan province, holds one of the largest untapped deposits of copper and gold globally.

Key Financing Details

The ADB package includes a $300 million loan to Canada’s Barrick Gold Corporation and a $110 million credit guarantee for Pakistan’s local government. Production at Reko Dik is scheduled to begin in 2028.

ADB President Masato Kanda called the project a “game-changer for Pakistan,” highlighting its role in supporting the clean energy transition, digital innovation, and global mineral supply chains.

Economic Potential and Strategic Importance

Once operational, Reko Dik is projected to be among the top five copper mines in the world. Copper is a critical component in renewable energy technologies, electric vehicles, and electronics, making this project strategically significant for global supply.

Pakistani officials view the mine as a cornerstone of the nation’s economic recovery strategy, particularly as the country seeks to position itself as a minerals and rare earth hub.

Insurgency and Human Rights Concerns

Despite the economic promise, the project has sparked strong opposition from human rights groups. Activists argue that Balochistan’s local population—where 70% of the 15 million residents live below the poverty line—has historically received little benefit from resource exploitation.

“This project risks increasing the vulnerability of human rights defenders and contributing to environmental and social destruction,” warned a coalition of 30 civil society organizations, including MiningWatch Canada and the Asia-Pacific Network of Environmental Defenders, in a public letter to ADB and IFC.

Security Challenges in Balochistan

Balochistan has long been a hotspot of separatist insurgency, with foreign-funded energy and mining projects frequently targeted. Analysts warn that escalating tensions could further complicate the implementation of the Reko Dik project.