WEB DESK: A major milestone in the $10 billion Reko Diq copper-gold mining project is anticipated as an agreement for constructing a 1,350-kilometre railway line is likely to be signed on October 2, according to sources familiar with the matter.
Senior officials from Pakistan’s Ministry of Railways are scheduled to visit the United Kingdom to finalize the terms of the railway agreement. Meanwhile, the Economic Coordination Committee (ECC) has approved $390 million in bridge financing, which will be provided by the Reko Diq Mining Company.
This interim funding will support the construction of a rail corridor connecting Balochistan to Karachi, designed to facilitate the transportation of extracted minerals. Under the proposed plan, the Railway Board not the federal government will have oversight authority over the project through legislative reforms. All associated fees, tariffs, and revenue-sharing mechanisms will be subject to the Railway Board’s approval.
The railway network will also be opened to investors for operational use, making it a critical component of the project’s logistics infrastructure.
Project officials revealed that the total cost of Phase I has now risen to $7.72 billion, up from the previously updated estimate of $6.8 billion — and significantly higher than the initial projection of $4.3 billion. Phase II is expected to require an additional $3.3 billion. To support the mining operation, Pakistan’s Ministry of Finance is seeking a $3.5 billion loan, with financing talks currently underway with global institutions, including the Asian Development Bank (ADB).
According to officials, the project aims to start production in 2028. During Phase I, the annual copper extraction target is set at 200,000 tonnes. Completion of this phase is projected by 2029, while Phase II is scheduled to begin in 2034.
