Pakistan, Canada explore investment as Reko Diq mine project advances

ISLAMABAD (Web Desk) - Pakistan and Canada are exploring deeper cooperation in the minerals and energy sectors as Islamabad accelerates efforts to revive long-delayed mining projects, including the Reko Diq copper-gold mine, one of the world’s largest undeveloped mineral deposits, according to a statement from Pakistan’s Information Ministry this week.

Recent steps toward implementation include multilateral financing arrangements involving international banks and institutions, and major equipment contracts, such as a $440 million deal with Japan’s Komatsu for mining machinery, signaling readiness for construction phase activities starting in 2026.

Last month, Washington approved $1.25 billion in US Export-Import Bank financing for Reko Diq, with the package also expected to unlock up to $2 billion in US equipment and service exports for the project.

First production is expected by late 2028 under the revived partnership, with estimates suggesting annual output of around 200,000 tons of copper and significant gold yields once operations scale up.

This project is central to Islamabad’s strategy to position mining as a pillar of economic recovery, as it hosts international mineral investment forums, seeks partnerships with Western and Gulf countries, and signs cooperation agreements on critical minerals, including with the United States.

Officials see large-scale mining projects as potential drivers of exports, foreign exchange earnings and job creation in a country grappling with debt pressures and slow growth.