Europe Wants a Piece of Pakistan’s Mineral-Rich Reko Diq Project

The European Union’s lending arm ‘European Investment Bank’ has expressed interest in investing in Pakistan’s Reko Diq gold and copper mine to gain access to critical minerals.

Speaking at the EU Pakistan Business Forum, Director General Minerals Nawaz Ahmed Virk said the mine’s reported worth of $6 trillion was “highly exaggerated” and not based on detailed exploration studies but still possessed huge mineral potential.

The Reko Diq project, one of the largest undeveloped copper and gold deposits in the world, has emerged as a key focus for international investors. An official from the European Investment Bank, Marco Arena, said the institution is interested in financing enabling infrastructure for the project, while also seeking a share in the off take of critical minerals to support Europe’s green and digital transitions.

Pakistan has offered tax incentives to attract foreign investment in the project, including exemptions on income during the development phase. However, contractors have raised concerns over the application of sales tax and withholding tax, prompting ongoing discussions between the Ministry of Energy and the Finance Division to potentially defer these levies until production begins.

The project has also faced setbacks, as Barrick Gold recently slowed development activities due to rising security risks and broader uncertainties. The company said it will continue reviewing the project until mid 2027, citing concerns around security, financing, and capital requirements.

Initial estimates place the first phase of the project’s cost between $5.6 billion and $6 billion, with an additional $3.3 billion to $3.6 billion projected for the second phase. First production is currently targeted by the end of 2028, although timelines may shift depending on evolving conditions.