The feasibility study for the Reko Diq copper and gold mining project has been completed, outlining a 37-year mine life with an estimated capital investment of $5.6 billion, excluding financing costs and inflation, Oil and Gas Development Company Limited (PSX: OGDC) informed the main bourse on Tuesday.

The project, divided into two phases, will begin with Phase 1, which is set to process 45 million tonnes of mill feed annually starting in 2028. Phase 2, expected by 2034, will double this capacity to 90 million tonnes per annum. Over its lifespan, the project aims to produce 13.1 million tonnes of copper and 17.9 million ounces of gold.

Phase 1 is planned to be financed through a limited-recourse project financing facility of up to $3 billion, with the remaining investment covered by shareholder contributions. Discussions for Phase 2 financing are ongoing and may involve revenue generation from the project, additional project financing, and further shareholder contributions if necessary.

The project is owned by a consortium comprising Oil and Gas Development Company Limited (OGDCL), three state-owned enterprises holding a collective 25 percent stake, the Government of Balochistan (25 percent), and Barrick Gold Corporation (50 percent), which is also the operator.

OGDCL’s board of directors has approved an increase in the company’s funding commitment in line with its share of total capital investment, bringing its contribution to $627 million, inclusive of project financing costs. The company’s board has also given in-principle approval to seek project financing, with shareholder equity contributions estimated at $349 million.

Industry experts note that rising copper and gold prices are expected to offset the impact of higher project costs, making the project financially viable. The approval of financing commitments by stakeholders marks a significant step toward the development of one of the world’s largest undeveloped copper-gold deposits.