A new study has revealed that the Reko Diq copper and gold mines hold reserves worth over $60 billion, it emerged on Wednesday.
In response, the state-owned Oil and Gas Development Company Ltd (OGDCL), Pakistan Petroleum Ltd (PPL), and Government Holdings (Pvt) Ltd (GHPL) have raised their financial commitment to the project from $900 million to $1.88 billion.
According to the OGDCL, the project’s reserves are projected to yield 13.1 million tons of copper and 17.9 million ounces of gold over its operational lifespan. The feasibility study further highlighted a promising 25% return on investment, marking this as one of the world’s most profitable copper and gold ventures.
On Tuesday, Pakistan announced an upward revision in the cost of the project’s first phase, increasing it by 58% to $6.8 billion.
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The adjustment accounts for the expanded scope of the project, inflationary pressures, and increased production requirements. Authorities stated that this $2.5 billion cost increase will be offset by higher global prices for gold and copper.
Over the 30-year duration of the project, Pakistan’s federal and provincial governments are expected to earn $7.1 billion in royalties and taxes, alongside dividends from their 50% ownership stake.
