Karachi: The Oil and Gas Development Company Limited has announced the completion of the feasibility study for the Reko Diq Project, a significant milestone in its development. The study outlines a 37-year mine life, divided into two phases, with an estimated capital outlay of USD 5.6 billion for Phase 1, excluding financing costs and inflation. The announcement was made on March 25, 2025.
The Company's share in the project is 8.33% as part of a collective 25% stake held by three Pakistani State-Owned Enterprises, including Pakistan Petroleum Limited and Government Holdings (Private) Limited. These interests are held through Pakistan Minerals (Private) Limited. The other stakeholders include the Government of Balochistan, which holds a 25% share divided into a 15% fully funded basis and a 10% free carried basis, and Barrick Gold Corporation, which holds a 50% stake and operates the project.
According to information available from the Pakistan Stock Exchange (PSX), the updated feasibility study plans for Phase 1 to process 45 million tonnes of mill feed annually by 2028. Phase 2 aims to double this capacity to 90 million tonnes per annum by 2034. The Reko Diq project anticipates producing 13.1 million tonnes of copper and 17.9 million ounces of gold over its lifespan.
The board of directors of the Company has approved an increase in the funding commitment, reflecting its pro rata share of the total capital investment to USD 627 million, subject to adjustments for actual financing costs and inflation. Shareholder equity contributions by the Company are expected to amount to USD 349 million after accounting for project financing. These approvals are contingent upon the clearance from shareholders and regulatory bodies.
The project aims to secure a limited-recourse project financing facility of up to USD 3 billion for Phase 1, with ongoing negotiations. Phase 2 funding will rely on revenue generation, additional financing, and potentially further shareholder contributions.
The disclosure complies with Section 96 of the Securities Act, 2015, and Clause 5.6.1(a) of the PSX Regulations, ensuring transparency and dissemination among stakeholders.