$6.4 billion Reko Diq deal set for signing next month
Wire desk byline Sourced from Xinhua, Dawn, Arab News, Anadolu and Minute Mirror. Translated and abridged by the GSRRA Desk.
Production is expected to begin approximately three years after financial closure
The signing of the $6.4 billion Reko Diq mining project deal is expected next month, as final arrangements for loans from international partners are being completed.
The financial structure involves international lenders including the US EXIM Bank, UK EXIM Bank, World Bank, Asian Development Bank, and contributions from both the federal and Balochistan governments.
Following financial closure, investment inflows towards Pakistan are expected to accelerate, with around $3 billion anticipated from global financial partners alone.
Of the total $6.4 billion, the federal government will bear $3.4 billion, of which $1.7 billion will be attributed to Balochistan under the Petroleum Division’s share.
Production is expected to begin approximately three years after financial closure. In the first year of output, combined revenues for the federal and Balochistan governments are projected to reach $3 billion.
The Reko Diq project is considered one of the largest undeveloped copper-gold deposits in the world and is seen as a major step in attracting foreign direct investment into Pakistan’s mining sector.
Reference Link:- https://tribune.com.pk/story/2542989/reko-diq-project-valuation-to-reach-64bn-with-financial-closure-expected-next-month
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
