Barrick eyes over $2B in financing for Reko Diq

Barrick Gold (NYSE: GOLD) plans to secure more than $2 billion in financing for its Reko Diq copper and gold project in Pakistan, with term sheets expected to be finalized by early Q3, according to project director Tim Cribb in an interview with Reuters.

Reko Diq is considered one of the largest undeveloped copper-gold deposits in the world, projected to generate over $70 billion in free cash flow and $90 billion in operating cash flow over its lifetime. The project is jointly owned by Barrick Gold and the governments of Pakistan and Balochistan.

Phase one of the project, targeted to begin production in 2028, is currently under financing negotiations with multiple international lenders. According to Cribb, the mine is seeking $650 million from the International Finance Corporation and International Development Association, $500 million to $1 billion from the US Export-Import Bank and $500 million from other development finance institutions, including the Asian Development Bank, Export Development Canada, and the Japan Bank for International Cooperation.

“We expect to close the term sheet in either late Q2 or early Q3,” Cribb said.

A recent feasibility study has expanded the scope of the project. Phase one throughput is now expected to reach 45 million tonnes per year, up from 40 million, while phase two is projected to process 90 million tonnes annually, up from 80 million. As a result of the increased throughput, the mine’s lifespan has been revised down from 42 years to 37 years, although unaccounted-for mineral resources could extend it to as much as 80 years. The estimated cost for phase one has also risen from $4 billion to $5.6 billion.

The World Bank has also pledged to invest $2 billion annually in Pakistan’s infrastructure over the next decade, reinforcing the country’s appeal for international development financing.

Lenders are expected to secure offtake agreements as part of the financing terms. Potential buyers include countries in Asia such as Japan and South Korea, and European nations like Sweden and Germany, all seeking to lock in copper supply for industrial needs.

A strategic shift toward copper

Financing Reko Diq marks another major step in Barrick’s strategic pivot toward copper. CEO Mark Bristow has long expressed interest in growing the company’s copper portfolio, including previously exploring takeovers of copper giants Freeport-McMoRan and First Quantum Minerals—deals that ultimately did not materialize.

Reflecting this shift, the company is proposing a name change from Barrick Gold to Barrick Mining Corp.

“Barrick’s just really interested in copper now,” Carey MacRury, a mining analyst with Canaccord Genuity Group, told Bloomberg News.

“They haven’t really bought anything in gold, and they haven’t really built anything in gold since Bristow took over.”

(With files from Reuters and Bloomberg)