Funding part of wider Exim-backed critical minerals push as production targeted for 2028.
The United States has allocated $1.3 billion in financing for Pakistan’s Reko Diq copper and gold mining project in Balochistan, providing a major portion of the capital required for the development of one of the country’s largest mineral ventures.
According to a news report, the funding has been approved under the US Export-Import Bank’s critical minerals financing framework, which aims to support extraction and processing of key raw materials needed for global supply chains.
The $1.3 billion allocation for Reko Diq forms part of Project Vault, a $10 billion financing programme designed to strengthen supply security and establish strategic reserves of critical minerals.
The Reko Diq project is being developed by Pakistan in partnership with a Canadian mining firm and requires total investment of around $3.2 billion. Construction activities at the site are already underway, with commercial production scheduled to begin in 2028.
According to official fact sheets, the Exim Bank’s authorised critical minerals portfolio includes financing for multiple projects across different jurisdictions. In addition to Reko Diq, approved transactions include $27.4 million for advanced metal powder production in Pennsylvania, $23.5 million for processing critical metals in Tennessee, $15.9 million for zinc mining in New York, and $11.1 million for titanium processing in Virginia.
Over the past year, the Exim Bank has issued Letters of Interest worth $14.8 billion for critical mineral projects globally. These include funding commitments for rare-earth processing and lithium extraction in the United States, cobalt and nickel production in Australia, and tin extraction projects in the United Kingdom and Australia.
Separately, the US Department of Energy has supported large-scale mineral and battery supply-chain projects through its Loan Programs Office. These include multi-billion-dollar loans and conditional commitments for lithium, graphite, potash, and battery recycling projects across the United States.
Despite its mineral endowment, Pakistan’s mining sector currently contributes about 3.2% to GDP, while mineral exports account for roughly 0.1% of global trade. The country has an estimated mineral outcrop area of 600,000 square kilometres and hosts 92 known minerals, of which 52 are commercially exploited. Annual mineral production is estimated at 68.52 million metric tons, supporting over 5,000 mines, around 50,000 small and medium enterprises, and direct employment for approximately 300,000 workers.
