The Asia Development Bank (ADB) has approved a $410 million financing package to support the development of Pakistan's Reko Diq copper and gold mine on Friday, as the country's rare earth deposits attract growing foreign interest.
The potentially hugely lucrative open-pit project in Pakistan's Balochistan province seeks to develop one of the world's largest untapped copper and gold deposits, with production expected to start in 2028.
For decades, Pakistan has battled a separatist insurgency in the mineral-rich southern province, where foreign-backed energy projects schemes - largely operated by Chinese companies - have come under attack.
The ADB package includes $300 million in loans to Canadian firm Barrick and a $110 million credit guarantee for the local government.
When completed, Reko Diq is projected to be the world's fifth-largest copper mine, producing a metal essential for wiring, electric motors and renewable energy technologies.
"Reko Diq will help the critical minerals supply chain, while advancing the clean energy transition and driving digital innovation," ADB President Masato Kanda said in a statement.
Kanda called the package "a game-changer for Pakistan... underpinning the nation's transition toward a more resilient and diversified economy."
Activists have criticised the Reko Diq project in Balochistan, where the insurgency has in part been fuelled by resentment over the division of spoils from natural resource extraction.
While Balochistan is rich in hydrocarbons and minerals, 70 percent of its 15 million inhabitants live below the poverty line.
Three dozen civil society groups called on the ADB as well as the International Finance Corporation to postpone investing in the Reko Diq mine.
Barrick defended its mining practices in a statement emailed to AFP.
"Barrick is committed to responsible mining and sharing the benefits of its operations with local stakeholder and partners, based on open and transparent engagement and the highest environmental and social safeguards," it said.
Pakistan’s military leadership has in recent months promoted the country’s potential as a hub for minerals and rare earths, touting them while negotiating trade tariffs with US President Donald Trump's administration.
Pakistani officials have long promoted the Reko Diq project as a cornerstone of the country's economic revival strategy.
