Karachi, March 25, 2025 – The Oil and Gas Development Company Limited (OGDCL) has provided a significant update on the progress of the Reko Diq gold and copper project, a major mining initiative in Pakistan.
In its latest disclosure to the Pakistan Stock Exchange (PSX) on Tuesday, OGDCL stated that it holds an 8.33% stake in the project. This share forms part of the 25% collectively owned by three Pakistani State-Owned Enterprises (SOEs), which include Pakistan Petroleum Limited (PPL) and Government Holdings (Private) Limited (GHPL). These holdings are managed through Pakistan Minerals (Private) Limited. The remaining ownership structure consists of the Government of Balochistan, which holds a 25% share (with 15% fully funded via Balochistan Mineral Resources Limited and 10% carried free), while the Barrick Gold Corporation retains 50% ownership and serves as the project operator.
According to the updated feasibility study, the Reko Diq gold and copper mine has a 37-year lifespan, which will be developed in two phases. Phase 1 is expected to require a capital investment of USD 5.6 billion, excluding financing costs and inflation adjustments. A significant portion of this, up to USD 3 billion, is planned to be secured through project financing, while the remainder will be funded by shareholders.
The project is currently exploring five of the fifteen identified mineral-rich areas within the mining lease, signaling strong potential for future expansion. Phase 1 is projected to process 45 million tonnes per annum (Mtpa) of ore starting in 2028, while Phase 2, set for 2034, aims to double this capacity to 90 Mtpa. Over its lifetime, the project is expected to yield 13.1 million tonnes of copper and 17.9 million ounces of gold.
In light of these projections, the OGDCL board of directors has approved an increase in the company’s funding commitment, raising its share of total investment—including financing costs—to USD 627 million. Shareholder equity contributions are estimated at USD 349 million, subject to final financing adjustments. Additionally, the board has granted in-principle approval to secure project financing, given the surge in copper and gold prices, which has helped counterbalance rising development costs.
This submission complies with Section 96 of the Securities Act, 2015 and Clause 5.6.1(a) of the PSX Regulations, ensuring full transparency for market participants and investors.