ADB approves $410 million for Pakistan copper-gold mine

The Asia Development Bank approved a $410 million package for developing Pakistan's Reko Diq copper and gold mine on Friday, as the country's rare earth deposits draw foreign interest and human rights concerns.

The potentially hugely lucrative open-pit project in Pakistan's Balochistan province seeks to develop one of the world's largest untapped copper and gold deposits, with production expected to start in 2028.

For decades, Pakistan has battled a separatist insurgency in the mineral-rich southern province, where foreign-backed energy projects -- mostly Chinese-operated -- have come under attack.

The ADB package includes $300 million in loans to Canadian firm Barrick and a $110 million credit guarantee for the local government.

When completed, Reko Diq is projected to be the world's fifth-largest copper mine, a metal critical for wiring, motors and renewable energy technology.

"Reko Diq will help the critical minerals supply chain, while advancing the clean energy transition and driving digital innovation," ADB President Masato Kanda said in a statement.

Kanda called the package "a game-changer for Pakistan... underpinning the nation's transition toward a more resilient and diversified economy."

Activists have criticised the Reko Diq project in Balochistan, where the insurgency has in part been fuelled by resentment over the division of spoils from natural resource extraction.

While Balochistan is rich in hydrocarbons and minerals, 70 percent of its 15 million inhabitants live below the poverty line.

Three dozen civil society groups called on the ADB as well as the International Finance Corporation to postpone investing in the Reko Diq mine.

"This project risks exacerbating the insecurity of human rights defenders and contributing to environmental and social destruction," the groups, including MiningWatch Canada and the Asia-Pacific Network of Environmental Defenders, wrote in an open letter published Tuesday.

Barrick did not immediately return a request for comment.

Pakistan's military chief has recently sought to play up the country's potential as a minerals and rare earths hub, while negotiating trade tariffs with US President Donald Trump's administration.

For decades, Pakistani officials have promoted the Reko Diq project as a cornerstone of the country's economic revival strategy.

Despite its potential, the mine has advanced slowly over the years, waylaid by legal disputes, bureaucratic complications and divisions between federal and provincial authorities.