Pakistan has finalized a 3.5 billion dollar financing agreement with six major international financial institutions for the development of the historic DIQ Reko extraction project in Balutchistan – an important step for one of the most important mineral companies in the country.
According to official sources, the financing package includes commitments of main world lenders such as the US Exim Bank, the Asian Development Bank, international financial institutions, the International Development Association and the European Bank.
The agreement was signed by the project sponsors, the federal government and Barrick Gold Corporation, while the final approval of the lenders of lenders remains pending. Once erased, the disbursement process should start within 45 to 90 days, subject to fulfilling the agreed conditions.
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Under the terms of the agreement, lenders will be granted a period of grace of four to five years, with loan reimbursements spread over a 12 -year schedule. Funding will bring an interest rate to a figure, offering Pakistan a relatively favorable loan frame.
The officials said that if all the prerequisites were completed in time, the first section of funds could be published within two months.
The main stakeholders in the project are Barrick Gold Corporation, Balouthistan Government, Oil Development Company Limited and Pakistan Petroleum Limited.
Under the structure of agreed shares, Barrick Gold will keep a share of 55%, while Ogdcl and PPL will jointly hold 27.7%. Balutchistan will maintain a participation of 16.6%.
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With a total cost estimated at around $ 7.7 billion, the Reko Diq project should start production by the end of 2028.
According to official estimates, the project could generate around 53 billion dollars in total income during its lifetime. Balutchistan is expected to receive $ 11 billion in budgetary income, $ 6 billion as provincial action and $ 9 billion thanks to the actions held by Baloutch Mineral Resources Limited.
The federal government is expected to earn about $ 11 billion in budgetary income, while Pakistan Minerals Private Limited will benefit from around $ 15 billion in equity.
