US EXIM Bank approves $1.25bn financing for Reko Diq mining project

The US Export-Import Bank (EXIM) has approved $1.25 billion in financing to support the mining of critical minerals at Reko Diq, one of the world’s largest undeveloped copper and gold deposits, located in Balochistan, Pakistan. The announcement was made by the US Embassy on social media platform X on Wednesday, marking a significant step in US-Pakistan economic cooperation.

Reko Diq is a joint venture between Canada’s Barrick Gold (50%) and Pakistani stakeholders (50%), with production expected to begin in 2028. The financing, part of the ongoing US-Pakistan partnership, is expected to drive economic growth in the region, particularly in Balochistan.

In a video message, US Chargé d’Affaires Natalie Baker highlighted that the EXIM financing would bring up to $2 billion in high-quality US mining equipment and services to build and operate the mine. She added that the project will create around 6,000 jobs in the US and 7,500 jobs in Balochistan, further strengthening ties between the two countries.

“The Reko Diq project serves as a model for mining ventures that benefit US exporters and local Pakistani communities,” Baker said, emphasizing the importance of the project in fostering employment and prosperity. She also noted that the Trump administration made such agreements central to American diplomacy, with a focus on deepening economic cooperation in critical minerals and mining sectors.

This announcement comes as part of a broader strategy by the US to secure its supply chains for critical minerals, nuclear energy, and liquefied natural gas. Last month, EXIM Bank Chairman John Jovanovic revealed plans to invest $100 billion in projects across Egypt, Pakistan, and Europe.

The financing deal also follows a series of recent agreements between the US and Pakistan, including a $500 million memorandum of understanding (MoU) signed in September between US Strategic Metals (USSM) and Pakistan’s Frontier Works Organisation (FWO) to bolster cooperation in the critical minerals sector. Pakistan also delivered its first batch of rare earth elements and critical minerals to USSM in October.