US EXIM approves $1.25bn financing for Reko Diq project
The United States has approved $1.25 billion in US Export-Import Bank (EXIM) financing for Reko Diq copper-gold mine located in Balochistan province.
US Chargé d’Affaires Natalie Baker said in a video message said the package could unlock up to $2 billion in US equipment and service exports for the project.
“I am pleased to highlight the US Export-Import Bank recently approved financing of $1.25 billion to support the mining of critical minerals at Riko Diq in Pakistan,” Baker said.
“In the coming years, EXIM’s project financing will bring in up to $2 billion in high-quality US mining equipment and services needed to build and operate the Riko Diq mine, along with creating an estimated 6,000 jobs in the US and 7,500 jobs in Balochistan, Pakistan.”
The US diplomat added that the deal reflects the strategic direction of US commercial diplomacy.
“The Riko Diq project serves as the model for mining projects that will benefit US exporters as well as local Pakistani communities and partners by bringing employment and prosperity to both our nations,” Baker added.
“The Trump administration has made the forging of deals exactly like this one central to American diplomacy.”
https://x.com/usembislamabad/status/1998654886850773219
The facility, one of the largest US financing decisions in Pakistan’s minerals sector, is expected to help pave the way for US-sourced mining technology, drilling machinery and operations support, while creating jobs in both countries and accelerating development of one of the world’s largest untapped copper deposits.
The $7 billion Reko Diq project is being developed by Canadian mining giant Barrick Gold in partnership with federal and provincial governments and aims to start production in 2028.
Saudi Arabia’s Manara Minerals, a Public Investment Fund and Ma’aden joint venture, has also expressed intent to acquire a 15 percent stake.
Last month, the US EXIM chair John Jovanovic that the bank will invest $100 billion to secure US and allied supply chains for critical minerals, nuclear energy and liquefied natural gas. The first tranche of deals will include projects in Egypt, Pakistan and Europe, Jovanovic told the Financial Times.
Earlier in September, the US Strategic Metals (USSM) of the United States and Pakistan’s Frontier Works Organisation (FWO) signed a memorandum of understanding (MoU) worth $500 million to strengthen cooperation in the critical minerals sector.
Following the agreement, Pakistan successfully delivered its first batch of rare earth elements and critical minerals to USSM in the United States in October.