The International Finance Corporation (IFC) will provide a $400 million subordinated loan to support development of the Reko Diq copper-gold mine in Pakistan, bringing its total commitment to the project to $700 million.
The loan was disclosed on Friday and it adds to the earlier $300 million pledge made in April. The mine’s total estimated cost is $6.6 billion and will be funded through a mix of debt and equity from a consortium of global lenders.
Subordinated loans, which are repaid after senior debt, help absorb risk and make large-scale projects more bankable. Additional financing is expected from the U.S. EXIM Bank, Asian Development Bank, Export Development Canada, and Japan’s JBIC, according to project director Tim Cribb.
The Reko Diq mine, located in Pakistan’s Balochistan province, is seen as a key asset for the country’s mining sector and a potential driver of export revenue. Final term sheets are expected to close early in the third quarter, signaling strong progress toward securing the full financing package.
The project aligns with broader efforts to attract foreign capital to Pakistan’s resource sector, which has long faced political and regulatory hurdles.
