Islamabad:
The Board of Directors of the Petroleum and Gas Development Company (OGDC) has approved an increase in the company’s financing commitment with $ 627 million, including the cost of financing of the project, which reflects its proportional participation in the investment of total capital in the Copper and Gold Mining Project Reko Diq of copper and multimillionaire gold.
The approval occurred following the completion of an updated feasibility study in the Reko DIQ project, located in Chagai, Baluchistan.
The increase in investment takes into account the estimated increase in copper and gold prices, which will help compensate for the highest project costs. The capital contribution by the company’s shareholders is expected to consider project financing, be $ 349 million (to comply with real project financing and inflation costs).
OGDC announced on Tuesday the completion of the updated feasibility study, marking a significant milestone on Pakistan’s trip to the unlocking of one of the largest copper and gold reserves in the world.
OGDC has a 8.33% participation in the Reko DIQ project as part of a 25% collective participation in the possession of three Pakistani state companies, which also include Pakistan Petroleum Limited and Government Holdings (private) Limited. The interest of the state units is managed through the limited (private) minerals. From the remaining participation of 75%, the Baluchistan government has 25% (15% on a fully financed base through Baluchistan Mineral Resource Limited and 10% free of charge) and 50% is with Barrick Gold Corporation, the project operator.
The updated feasibility study describes a 37 -year -old mine life, divided into two phases. Phase I implies an estimated capital disbursement of $ 5.6 billion (excluding financing and inflation costs) and is expected to begin operations in 2028.
A limited resource financing installation of up to $ 3 billion is being carried out, with the remaining funds that will be provided through the shareholders’ contribution. Negotiations for project financing are ongoing.
The project will take advantage of five of the 15 porphyry surface expressions currently identified under the current mining lease, which highlights a substantial future growth potential.
It is planned that phase II is financed through a combination of project income, additional financing and shareholders contribution (if necessary).
According to the updated feasibility study, Phase I is planned to process 45 million tons of mill feed annually since 2028. By 2034, it is planned that phase II doubles the processing capacity to 90 million tons per year.
According to existing reserves, the Reko DIQ project is expected to produce 13.1 million tons of copper and 17.9 million ounces of gold during the life of the mine (in a 100%base).
The completion of the feasibility study represents an important achievement for the Reko DIQ project, reinforcing its potential to generate long -term economic benefits, create jobs and guarantee improved income flows for Pakistan.
