The European Investment Bank (EIB) has shown interest in participating in Pakistan’s Reko Diq mining project as Europe looks to secure reliable supplies of critical minerals, while Pakistani officials clarified that claims of the country holding $6 trillion worth of mineral reserves are overstated.
Speaking at the EU-Pakistan Business Forum in Islamabad, Director General Minerals Nawaz Ahmed Virk said the frequently quoted valuation of Pakistan’s mineral wealth lacks scientific backing and is not supported by comprehensive exploration data. He noted, however, that Pakistan still possesses substantial untapped mineral resources capable of attracting international investment.
Reko Diq, widely regarded as one of the world’s largest undeveloped copper and gold deposits, has increasingly drawn attention from global investors amid rising demand for metals essential to clean energy and digital technologies. Marco Arena, representing the European Investment Bank, said the institution is exploring opportunities to finance infrastructure linked to the project while also seeking long-term access to mineral output to support Europe’s green and technological transition goals.
To encourage foreign participation, Pakistan has introduced a range of fiscal incentives, including income tax exemptions during the project’s development stage. Nevertheless, contractors involved in the project have expressed concerns over the implementation of sales and withholding taxes. Discussions are currently underway between the Ministry of Energy and the Finance Division on the possibility of postponing these taxes until commercial production begins.
Development progress has faced challenges in recent months. Mining giant Barrick Gold slowed certain activities at the site, citing heightened security risks and broader financial uncertainties. The company has indicated that it will reassess project timelines through mid-2027 as it evaluates security conditions, funding requirements, and capital commitments.
According to preliminary projections, the first phase of Reko Diq is expected to require investment between $5.6 billion and $6 billion, while the second phase could add another $3.3 billion to $3.6 billion in costs. Initial production is currently targeted for late 2028, although schedules remain subject to change depending on evolving operational conditions.
Ownership of the project is split between Barrick Gold, which holds a 50 percent stake, while Pakistani state-owned enterprises and the Government of Balochistan each control 25 percent. Despite operational and financial hurdles, Reko Diq remains a cornerstone of Pakistan’s long-term strategy to develop its mining sector, attract foreign capital, and integrate into global supply chains for critical minerals.
