Karachi: Pakistan Petroleum Limited (PPL) announced the completion of the feasibility study for the Reko Diq project on March 25, 2025, alongside obtaining necessary approvals. This milestone marks a significant development in the mining sector, with PPL's share representing 8.33% of the project. This stake is part of a collective 25% held by three Pakistani State-Owned Enterprises (SOEs), including Oil and Gas Development Company Limited and Government Holdings (Private) Limited, through Pakistan Minerals (Private) Limited. Barrick Gold Corporation holds a 50% stake and operates the project, while the Government of Balochistan holds the remaining 25%.
The updated feasibility study projects a 37-year mine life, divided into two phases. Phase 1 requires a capital outlay of USD 5.6 billion, excluding financing costs and inflation. It will be funded through a limited-recourse project financing facility of up to USD 3 billion, with remaining costs covered by shareholder contributions. Phase 2 will be financed through a combination of project revenue, additional financing, and shareholder contributions, if necessary. The project plans to leverage five of the fifteen identified porphyry surface expressions, indicating substantial growth potential.
According to information available from the Pakistan Stock Exchange (PSX), Phase 1 aims to process 45 million tonnes of mill feed annually from 2028, doubling to 90 million tonnes per annum by 2034 in Phase 2. The Reko Diq project is estimated to produce 13.1 million tonnes of copper and 17.9 million ounces of gold over its lifespan on a 100% basis.
PPL's board of directors has approved an increase in the company's funding commitment to USD 627 million, reflecting its pro rata share of total capital investment, inclusive of project financing costs. The board has also granted in-principle approval to obtain project financing. Shareholder equity contributions by PPL, after accounting for project financing, are expected to be USD 349 million. These approvals remain subject to shareholders' and regulatory consent.
This information is submitted in compliance with Section 96 of the Securities Act, 2015, and Clause 5.6.1 of the Pakistan Stock Exchange Limited Regulations for dissemination among market members.