ISLAMABAD, March 25, 2025 – Oil and Gas Development Company Limited (OGDCL) has announced the completion of the updated feasibility study for the Reko Diq Project, marking a significant milestone in Pakistan’s journey toward unlocking one of the world’s largest undeveloped copper-gold resources.
Project Ownership Structure
OGDCL holds an 8.33% share in the project as part of a collective 25% stake held by three Pakistani State-Owned Enterprises (SOEs), including:
- Pakistan Petroleum Limited (PPL)
- Government Holdings (Private) Limited (GHPL)
The SOEs’ interest is managed through Pakistan Minerals (Private) Limited. The remaining shares are distributed as follows:
- 25% – Government of Balochistan (15% fully funded through Balochistan Mineral Resources Limited and 10% free carried)
- 50% – Barrick Gold Corporation (operator of the project)
Project Phases and Investment
The updated feasibility study outlines a mine life of 37 years, divided into two phases:
Phase 1 (2028 Onwards)
- Estimated capital outlay: USD 5.6 billion (excluding financing costs and inflation)
- Operations commencement: 2028
- Financing:
- Up to USD 3 billion in limited-recourse project financing (negotiations ongoing)
- Remainder funded through shareholder contributions
Phase 2 (2034 Expansion)
- Processing capacity expansion: From 45 million tonnes per annum (Mtpa) to 90 Mtpa
- Funding: Generated through project revenue, additional financing, and shareholder contributions (if required)
Production Estimates
Based on existing reserves, the Reko Diq project is expected to yield:
- 13.1 million tonnes of copper
- 17.9 million ounces of gold
(100% basis over the mine’s life)
OGDCL’s Increased Funding Commitment
The Board of Directors of OGDCL has approved an increase in the company’s funding commitment to USD 627 million (inclusive of project financing costs), reflecting its proportional share of total capital investment. Key financial details include:
- Shareholder equity contributions: USD 349 million (subject to adjustments for actual financing costs and inflation)
- The increase accounts for rising copper and gold prices, offsetting higher project costs.
Future Growth Potential
The project will initially leverage five of the 15 identified porphyry surface expressions within the mining lease, indicating substantial expansion opportunities.
Economic Impact
The completion of the feasibility study reinforces the Reko Diq Project’s potential to deliver:
- Long-term economic benefits for Pakistan
- Job creation
- Enhanced revenue streams
This development marks a critical step forward in Pakistan’s mining sector, positioning Reko Diq as a key player in global copper and gold production.
