United States Announces $1.3 Billion Investment in Pakistan’s Reko Diq Copper and Gold Project

In a landmark move for the global minerals sector, the United States has earmarked $1.3 billion to support the Reko Diq copper and gold mining project in Balochistan, Pakistan. This funding is part of a broader U.S. industrial policy shift aimed at securing global supply chains for critical minerals.

Fueling the Extraction of World-Class Mineral Reserves

The Reko Diq project, a joint venture between the Government of Pakistan and a leading Canadian mining firm, requires a total capital injection of $3.2 billion for its initial phases. The $1.3 billion commitment from the United States Export-Import (Exim) Bank covers nearly 40% of the required capital, accelerating the path toward commercial production, which is slated to begin in 2028.

Construction work has already commenced at the site. Once operational, the mine is expected to be a cornerstone of Pakistan’s economy, significantly boosting the mineral sector’s current 3.2% contribution to the national GDP.

“Project Vault” and the Critical Minerals Portfolio 2026

The investment in Reko Diq is a key component of the newly announced “Project Vault,” a $10 billion strategic initiative led by the U.S. Exim Bank. Announced under the leadership of President Trump, Project Vault represents an unprecedented step in U.S. industrial policy, designed to:

• Establish domestic strategic reserves for critical minerals.
• Shield manufacturers from global supply shocks.
• Strengthen the collective supply-chain security of the U.S. and its strategic partners.

Global Impact and Economic Growth in Pakistan

With a mineral-rich landscape covering 600,000 square kilometers and 92 known minerals, Pakistan is positioned to become a major player in the global mining industry. The Reko Diq project is expected to:

• Create Jobs: Directly support the growth of a sector that already employs over 300,000 workers.
• Boost Exports: Increase Pakistan’s mineral exports, which currently account for only 0.1% of the world’s total.
• Infrastructure Development: Drive significant infrastructure improvements in the Balochistan region.

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A Broader Strategy for Critical Minerals

The U.S. Exim Bank’s “Critical Minerals Portfolio 2026” also includes multi-million dollar investments in titanium, nickel, lithium, and rare-earth processing across the United States, Australia, and the United Kingdom. However, the $1.3 billion allocation for Reko Diq remains one of the largest international transactions in the portfolio, highlighting the strategic importance of Pakistan’s mineral reserves to the global market.

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