US commits USD 1.25 billion EXIM financing for Reko Diq mine in Pak’s Balochistan

Islamabad, Dec 10 (PTI) The Trump administration has approved USD 1.25 billion in US Export-Import (EXIM) Bank financing for Pakistan's Reko Diq copper-gold mine in restive Balochistan, the mineral-rich but poor province hit by militancy and insurgencies.

In a video message posted on X on Wednesday, US Charge d'Affaires in Islamabad Natalie Baker said that EXIM Bank would invest up to USD 2 billion in Pakistan to support the mining sector.

"I'm pleased to highlight the US Export-Import Bank recently approved financing of USD 1.25 billion to support the mining of critical minerals at Reko Diq in Pakistan," Baker said, sharing details of the planned investment.

“In the coming year, EXIM’s project financing will bring in up to $2 billion in high-quality US mining equipment and services needed to build and operate the Reko Diq mine, along with creating an estimated 6,000 jobs in the US and 7,500 jobs in Balochistan,” she said.

She said the Reko Diq mine "serves as the model for mining projects that will benefit US exporters, as well as local Pakistani communities and partners".

Baker said the initiative aligns with the Trump administration's approach to emphasise commercial partnerships. "The Trump administration has made the forging of deals exactly like this one central to American diplomacy," she noted.

She added that Washington looks forward to further agreements between American companies and their Pakistani counterparts in the critical minerals and mining sector, describing the project as one that aims to "bring employment and prosperity to both our nations." Reko Diq is a key copper-gold mine in the Balochistan province, featuring vast, undeveloped deposits. A partnership has been agreed between Barrick Gold Mining company and Pakistan's federal and Balochistan provincial governments, targeting first production in 2028.

The announcement by the US diplomat comes as Washington aims to expand its search for minerals.

Pakistan and US relations have improved in the wake of a brief clash between Pakistan and India, after Islamabad credited Donald Trump for the ceasefire and also nominated him for the Nobel Peace Prize. PTI SH  ZH ZH