A $410 million package for the development of Pakistan’s Reko Diq copper and gold mine was approved by the Asia Development Bank on Friday, amid human rights concerns and international interest in the nation’s rare earth reserves.
Production is anticipated to begin in 2028 as part of the potentially extremely profitable open-pit project in Pakistan’s Balochistan region, which aims to exploit one of the largest undeveloped copper and gold reserves in the world.
In the mineral-rich southern province of Pakistan, where foreign-backed energy projects—mostly run by Chinese companies—have been targeted for decades due to a separatist rebellion.
The ADB package includes $300 million in loans to Canadian firm Barrick and a $110 million credit guarantee for the local government.
When completed, Reko Diq is projected to be the world’s fifth-largest copper mine, a metal critical for wiring, motors and renewable energy technology.
“Reko Diq will help the critical minerals supply chain, while advancing the clean energy transition and driving digital innovation,” ADB President Masato Kanda said in a statement.
Kanda called the package “a game-changer for Pakistan… underpinning the nation’s transition toward a more resilient and diversified economy.”
The Reko Diq project has drawn criticism from activists in Balochistan, where the conflict has been fueled in part by animosity over the distribution of the profits from the mining of natural resources.
Despite having abundant mineral and hydrocarbon resources, 70% of Balochistan’s 15 million people live below the poverty line.
The International Finance Corporation and the ADB were urged by three dozen civil society organizations to delay their investment in the Reko Diq mine.
“This project risks exacerbating the insecurity of human rights defenders and contributing to environmental and social destruction,” the groups, including MiningWatch Canada and the Asia-Pacific Network of Environmental Defenders, wrote in an open letter published Tuesday.
Barrick did not immediately return a request for comment.
Pakistan’s military chief has recently sought to play up the country’s potential as a minerals and rare earths hub, while negotiating trade tariffs with US President Donald Trump’s administration.
For decades, Pakistani officials have promoted the Reko Diq project as a cornerstone of the country’s economic revival strategy.
Despite its potential, the mine has advanced slowly over the years, waylaid by legal disputes, bureaucratic complications and divisions between federal and provincial authorities.
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