The Project is 100% owned and is being developed by Reko Diq Mining Company (Private) Limited (the Borrower or RDMC), which is incorporated in Pakistan. RDMC is indirectly owned 50% by Barrick Gold Corporation (Barrick), 25% by three Pakistani State-Owned Enterprises (SOEs, each with 8.33% of the Project); and 25% by the Government of Baluchistan (the GoB, of which 10% is a free carried noncontributing interest) (collectively the Sponsors). Barrick is headquartered in Toronto, Canada, and is dually listed on the Toronto and New York stock exchanges, it is a sector-leading gold and copper producer, operating mines and projects in 18 countries. The three SOEs, Oil and Gas Development Company Limited (OGDCL), Government Holdings (Private) Limited (GHPL), and Pakistan Petroleum Limited (PPL), are some of the largest companies in the Pakistani oil and gas sector. Barrick is also the Project operator.

 The estimated total Project cost is $6.6bn, and it will be financed using a combination of debt and equity.

 IFC’s proposed investment consists of an A-loan of up to $300m, and a subordinated loan of up to $400m from IFC as the implementing entity of IDA20 Private Sector Window (PSW), and for its own account under IFC’s Concessional Capital Window for IDA20 (CCW-IDA20). Other parallel lenders will provide the remaining debt financing

The Project is in the Chagai district of Baluchistan province in Pakistan, bordering Afghanistan and Iran. It is located in a sparsely populated desert area, with the closest major settlement 75 km away.

Pakistan has a strong mineral endowment, but mining contributes only about 2% to GDP. Large-scale mining faces barriers such as infrastructure gaps, long development timelines, high geological risks, and until 2022, the arbitration issues related to Reko Diq. Reko Diq's reconstitution was approved in December 2022 with endorsements from all government levels, including a favorable Supreme Court ruling. The Project's governance, applicable royalty and tax regime, and fiscal stabilization are based on the Project Joint Venture Agreement (JVA) and Mineral Agreement. Since 2003, the World Bank (2003, 2005, 2011) has supported Pakistan's mineral sector development, and the current WBG 2026-2035 Country Partnership Framework focuses on increasing private investment and exports to promote GDP growth. Finally, as part of the IMF's Extended Arrangement for the Extended Fund Facility approved in November 2023, the Government of Pakistan's policy priorities focus on fiscal reforms to enhance revenue, spending efficiency, transparency, and tax base expansion.

The Project will generate significant benefits to the economy by generating foreign currency revenues, government revenues, and direct/indirect employment. IFC has considered governance risks to project benefits and is satisfied that the Project should be supported given the following: (i) the Borrower has agreed to publicly disclose its payments (taxes, royalties, etc.) to the government and the key terms/conditions of any contracts with the government under which minerals will be mined; (ii) IFC's assessment indicates that the tax base erosion risk is low; (iii) the Borrower's governance framework under the JVA which requires the Borrower to adopt the policies of Barrick, an experienced operator, who intends to implement formal corporate governance frameworks mirroring its corporate standards; (iv) the World Bank Group and IMF overall engagement; and (v) the participation of the Government of Pakistan in the Borrower's ownership.

 This is a Category A project as per IFC's Environmental and Social Sustainability Policy due to its potential significant adverse environmental or social risks and/or impacts that are diverse, irreversible, or unprecedented. 

Key environmental and social (E&S) aspects and potential risks associated with the Project are: (i) adequacy of E&S assessments in line with IFC Performance Standards; (ii) corporate and project-specific Environmental and Social Management System (ESMS); (iii) E&S oversight capacity during construction and operation of the mine; (iv) contractor management; (v) planned and unplanned labor influx; (vi) labor and working conditions; (vii) management of supply chain risks; (viii) use of natural resources; (ix) air emissions, including Greenhouse Gas Emissions (GHG) and air quality; (x) acid rock drainage and tailings management; (xi) community health and safety including transport and gender based violence and harassment (GBVH); (xii) biodiversity impacts; (xiii) cumulative impacts; and (xiv) stakeholder engagement and community grievance mechanism.