Pakistan’s Reko Diq copper-gold mine will receive a “$400 million” subordinated loan from the International Finance Corporation (IFC), the IFC disclosed.

The loan brings IFC’s overall project financing to “$700 million”, adding to a “$300 million” commitment made in April. The mine is expected to cost “$6.6 billion”, which will be paid for by a group of lenders using a combination of debt and equity.

The statement stated that additional parallel lenders will supply the remaining debt financing.

Also Read: JUI-F Demands Economic Reforms In Pakistan, Slams 2025–26 Budget

“The expected total Project cost is “$6.6bn”, and it will be funded using a combination of debt and equity,” the disclosure stated.

Usually returned after other senior loans, this kind of loan—also referred to as subordinated debt—assists in taking greater risk, which facilitates investment by other lenders.

Tim Cribb, the project director, informed Reuters in April that additional banks, such as Japan’s JBIC, the Asian Development Bank, Export Development Canada, and the U.S. EXIM Bank, will likely be part of the financing package.

Early in the third quarter is when term sheets are anticipated to conclude. Earlier this year, IFC chief Makhtar Diop declared that the organization was “doubling down” on Pakistan, emphasizing natural resources, energy, and infrastructure.

One of the biggest undeveloped copper-gold resources in the world is Reko Diq, which is situated in Balochistan. The federal and provincial governments of Pakistan share the remaining 50% in the project, which is being developed by Barrick Gold. It is anticipated that production will start in 2028. Over the mine’s planned 37-year lifespan, Barrick has predicted that it will produce up to $74 billion in free cash flow.