The Board of Directors of Oil and Gas Development Company (OGDC) has approved an increase in the company’s financing obligation to $ 627 million, including project financing costs, reflecting its proportional share of total capital investments in the Project Project Project for Multibillion-Dollar Reko DIQ Copper and Gold Mining.

The approval came in the wake of the end of an updated feasibility study of the Reko DIQ project, located in Chagai, Balochistan.

The increase in investments takes into account the estimated increase in copper and gold prices, which will help offset higher project costs. Equity contributions from the company’s shareholders are expected after considering project financing to be $ 349 million (it needs to be adjusted for actual project financing costs and inflation).

OgDC announced on Tuesday the end of the updated feasibility study, which marked a significant milestone in Pakistan’s journey towards unlocking one of the world’s largest copper and gold reserves.

OGDC has an 8.33% shareholding in the Reco DIQ project as part of a collective 25% share that three Pakistani state -owned companies also have, which also includes Pakistan Petroleum Limited and Government Holdings (private) limited. The interest of the state units is controlled through the Pakistan Minerals (private) limited. Out of the remaining 75% interest, 25% of the Balochistan government (15% on a fully funded basis through the Balochistan Mineral Resources Limited and 10% on a free transported basis) and 50% are with Barrick Gold Corporation – the operator of the project.

The updated feasibility study outlines a mining life of 37 years, divided into two phases. Phase-I implies an estimated capital outlay of $ 5.6 billion (excluding financing costs and inflation) and is expected to start operations in 2028.

A financing facility is being pursued with limited rules of up to $ 3 billion, with the remaining funding to be granted through shareholder contributions. Negotiations on project financing are underway.

The project will utilize five of the 15 currently identified porphyry surface expressions under the current mining, which highlights a significant future growth potential.

Phase-II is planned financed through a mix of revenue generation from the project, additional financing and shareholder contributions (if necessary).

During the updated feasibility study, phase-in is scheduled to process 45 million tonnes of mill feed annually from 2028. By 2034, phase-II is planned to double the treatment capacity to 90 million tonnes per year.

Based on the existing reserves, the Reko DIQ project is expected to wipe out 13.1 million tonnes of copper and 17.9 million ounces of gold in my lifetime (on a 100% basis).

The end of the feasibility study represents an important achievement for the REKO DIQ project, which strengthens its potential to generate long-term financial benefits, create jobs and secure improved revenue streams for Pakistan.