What's Happening?
The United States has committed $1.3 billion in financing for Pakistan's Reko Diq copper and gold mining project located in Balochistan. This financial support is part of the U.S. Export-Import Bank's
critical minerals financing framework, which aims to bolster the extraction, processing, and supply of essential raw materials for global manufacturing and clean-energy supply chains. The Reko Diq project, one of the world's largest undeveloped copper and gold deposits, is being developed through a partnership between Pakistan and a Canadian mining company. The project requires an estimated total investment of $3.2 billion, with construction activities already underway and commercial production expected to begin in 2028.
Why It's Important?
The U.S. financing for the Reko Diq project underscores the strategic importance of securing critical minerals necessary for manufacturing and clean-energy supply chains. By supporting such projects, the U.S. aims to reduce dependence on limited sources and ensure stable access to essential resources. This move also strengthens bilateral economic cooperation between the U.S. and Pakistan, potentially enhancing geopolitical ties and economic stability in the region. The initiative is part of Project Vault, a $10 billion EXIM-backed program designed to enhance supply-chain security and establish strategic reserves of critical minerals worldwide.
