OGDCL Approves $715M Funding for Reko Diq Project

In the decision for Pakistan’s mining and energy future, shareholders of Oil & Gas Development Company Limited (OGDCL) have approved $715 million in funding for the Reko Diq project. This major step, finalized in the Extraordinary General Meeting (EGM) on September 10, 2025, underscores Pakistan’s commitment to unlocking one of the world’s largest untapped copper and gold reserves.

The Reko Diq project, located in Balochistan, is considered a game-changer for Pakistan’s resource sector. Operated by Barrick Gold Corporation, with 50% ownership, the joint venture includes the Government of Balochistan, OGDCL, Pakistan Petroleum Limited (PPL), and Government Holdings (GHPL). The project has long been viewed as a catalyst for foreign investment, job creation, and economic stability.

OGDCL’s $715 million contribution represents its pro-rata share for Phase 1 funding, provided to Pakistan Minerals (Private) Limited (PMPL) through equity and/or shareholder loans. This amount equals one-third of the total required funding for PMPL. The financing comes with provisions for inflation adjustments, tax gross-ups, indemnity, and capped liabilities. Additionally, OGDCL, PPL, and GHPL will issue joint corporate guarantees to secure project financing.

The approval of this funding marks a critical milestone in the Reko Diq project’s progress. With infrastructure and production facilities forming Phase 1, the project promises long-term economic benefits. OGDCL’s decisive step highlights Pakistan’s strategic intent to maximize its natural resources. The real question now is: Can the Reko Diq project transform Pakistan into a global mining hub?