The United States has approved $1.3 billion in financing for Pakistan’s Reko Diq copper and gold mining project in Balochistan. This support, provided through the Export-Import Bank of the United States (EXIM), forms part of a broader effort to secure reliable sources of critical minerals amid rising global demand.
The announcement came during the 2026 Critical Minerals Ministerial held in Washington on February 4. Officials from over 50 countries attended, including a delegation from Pakistan. The meeting focused on strengthening supply chains for minerals essential to technology, renewable energy, and manufacturing. The US also launched the Forum on Resource Geostrategic Engagement (FORGE) to promote cooperation on these issues.
This financing supports the Reko Diq project, one of the world’s largest undeveloped deposits of copper and gold. Pakistan is developing the site in partnership with Barrick Gold, a Canadian company. The total estimated investment for the project stands at around $3.2 billion to $7 billion, depending on sources, with construction underway and production expected to begin around 2028.
The US funding fits under Project Vault, an initiative announced by President Donald Trump on February 2, 2026. Led by EXIM, Project Vault aims to build a strategic reserve of critical minerals to protect US manufacturers from supply disruptions and boost domestic and allied production. While most funding targets US projects, Reko Diq stands out as the key international component in this portfolio.
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Experts view the move as a sign of confidence in Pakistan’s mining sector. It could generate thousands of jobs, boost exports, and bring substantial revenue over the long term. The support may also attract more foreign partners to similar ventures in the country.
