ADB–Pakistan funding: $410m package approved for Reko Diq; activists raise human rights and environmental concerns

The Asian Development Bank (ADB) on Friday approved a $410 million package for Pakistan’s Reko Diq copper and gold mine, as the country’s rare earth deposit are attracting foreign interests.The financing includes $300 million in loans to Canadian firm Barrick and a $110 million credit guarantee for the provincial government. The open-pit project in Pakistan’s Balochistan province is set to tap into one of the world’s largest undeveloped copper and gold reserves, with production scheduled for 2028. Once operational, it is expected to become the world’s fifth-largest source of copper, a key metal for wiring, motors, and renewable energy technologies.“Reko Diq will help the critical minerals supply chain, while advancing the clean energy transition and driving digital innovation,” ADB President Masato Kanda said. He further called the package “a game-changer for Pakistan… underpinning the nation’s transition toward a more resilient and diversified economy.”The project, however, is unfolding in Balochistan, a province scarred by decades of separatist insurgency. Armed groups have often targeted foreign-backed projects, particularly those operated by Chinese firms. Local resentment over resource extraction remains strong, as 70 percent of the province’s 15 million people live below the poverty line despite its vast hydrocarbons and mineral wealth.Civil society groups have also voiced alarm. In an open letter published on Tuesday, three dozen organisations, including MiningWatch Canada and the Asia-Pacific Network of Environmental Defenders, urged the ADB and International Finance Corporation to delay involvement. “This project risks exacerbating the insecurity of human rights defenders and contributing to environmental and social destruction,” the groups said.Barrick has not yet commented.Pakistan’s military leadership has recently highlighted the country’s potential as a minerals and rare earths hub, while pushing trade negotiations with US President Donald Trump’s administration. Pakistan’s military chief has recently highlighted the country’s potential as a hub for minerals and rare earths while engaging in trade talks with US President Donald Trump’s administration. For decades, Pakistani officials have pitched the Reko Diq project as central to Pakistan’s economic revival strategy. Yet progress has been sluggish, hampered by legal disputes, bureaucratic hurdles, and friction between federal and provincial authorities.