Pakistan’s massive Reko Diq copper and gold project is increasingly becoming a focal point of a growing US-Pakistan partnership over critical minerals, with Washington encouraging American companies to invest in Pakistan’s mining sector while highlighting the Balochistan project as a model for future cooperation.
The latest indication came this week when US Consul General in Lahore Statson Sanders described Reko Diq as an example of more than six decades of cooperation between Pakistan and the United States and said the project could generate nearly $1 billion in US exports of mining equipment and services over its lifetime.
Sanders also said American companies were exploring opportunities in Pakistan’s copper, gold, tungsten and antimony sectors, signalling that Washington’s interest extends beyond a single mining project.
The comments come as the United States seeks to secure reliable supplies of critical minerals used in modern technology, energy systems, computing and defence. Pakistan, meanwhile, is attempting to attract foreign investment into a mining sector that officials believe could provide a new source of exports, investment and government revenue.
Reko Diq is particularly significant because of the scale of its mineral deposits and the international companies and governments now showing interest in the project.
The project is being developed by Canada’s Barrick Mining Corporation, which owns a 50 percent interest. The remaining 50 percent is held by Pakistani stakeholders, with the federal government-owned companies Oil and Gas Development Company Limited, Pakistan Petroleum Limited and Government Holdings (Private) Limited collectively holding 25 percent and the Government of Balochistan holding the other 25 percent.
The Balochistan government’s share includes a 10 percent free-carried interest, meaning the province does not have to finance that portion of the project’s development costs.
The latest American push therefore does not mean the United States has acquired an ownership stake in Reko Diq. Instead, Washington’s potential role is emerging through financing, equipment, services and broader participation in Pakistan’s critical-minerals supply chains.
The United States has already committed significant financial support to the project.
In December 2025, the US Export-Import Bank approved $1.25 billion in financing for Reko Diq. The US Embassy said the financing could facilitate up to $2 billion in American mining equipment and services for construction and operation of the mine. The project was also expected to create thousands of jobs in the United States and Balochistan.
The financing is now part of a wider American effort to establish a stronger presence in Pakistan’s mineral sector.
Earlier this month, a US Embassy official told journalists that American companies were exploring opportunities ranging from small Pakistani mines to major copper and other critical-mineral projects. The official said the United States was prepared to finance another mining project on the scale of Reko Diq if feasibility studies demonstrated sufficient potential.
The official also acknowledged that Reko Diq was moving more slowly than originally planned and that some project costs were being recalculated. The overall financing package has yet to be finalised.
That development is significant because Reko Diq’s financing and development timetable have already faced delays linked to security and rising costs.
The project was initially expected to require around $7.7 billion for its first phase, including approximately $3.5 billion in debt financing. Barrick announced a review of the project earlier this year amid security and cost concerns.
The latest US interest therefore comes at a crucial stage. Washington is not simply talking about Pakistan’s mineral potential in general; American officials are increasingly presenting Reko Diq as an example of how the two countries could cooperate on critical minerals.
The relationship also has a much longer history.
According to US officials, the origins of Reko Diq’s mineral exploration can be traced to a joint US-Pakistan geological survey conducted in 1961, which helped identify copper and gold deposits in the region.
More than six decades later, the United States is again seeking a role in the mineral economy of Balochistan, this time as global competition for copper and other critical minerals intensifies.
The scale of the potential economic returns is one reason for the interest.
A US diplomat previously said Reko Diq could generate more than $75 billion in profits in Pakistan over its lifetime and nearly $1 billion in US exports of equipment and services. The figures represent estimates of the project’s long-term economic impact rather than guaranteed returns.
The project is expected to become one of Pakistan’s largest mining developments, with production targeted for the latter part of this decade. The first phase is expected to produce large quantities of copper, gold and other minerals, while a second phase could substantially increase production.
For Pakistan, the project is being promoted as a potential source of foreign exchange and long-term economic growth at a time when the country remains heavily dependent on external financing and faces persistent pressure on its balance of payments.
For Balochistan, however, the stakes are more complicated.
The province is home to some of Pakistan’s largest mineral deposits but remains one of the country’s least developed regions. Communities around mining areas have repeatedly raised concerns about employment, infrastructure, water, environmental protection and the distribution of mineral revenues.
The arrival of new international investors could therefore increase the economic opportunities surrounding Reko Diq, but it also raises questions about how much of the project’s economic activity will remain in Balochistan.
American companies could supply mining machinery, engineering services and other equipment, while Pakistani companies could potentially participate in construction, logistics, services and local procurement.
The US Embassy has also encouraged American companies to work with Pakistani partners familiar with local conditions and security challenges.
Security remains one of the biggest obstacles to the development of large-scale mining projects in Balochistan.
The province has experienced a long-running insurgency, with militants targeting security forces, government installations, infrastructure and projects associated with foreign investment.
The security situation has already affected another major copper and gold project in the province.
At Saindak in Chagai district, the Chinese-operated copper and gold mine faced concerns in July after the movement of essential supplies was disrupted. Reports raised the possibility that prolonged supply problems could threaten operations, although Saindak Metals Limited rejected claims that the mine was facing closure and said operations were continuing.
The government subsequently announced additional security measures for the Chinese-run project and its transportation routes.
Saindak’s experience demonstrates the challenge that Reko Diq will face as it moves towards large-scale production.
The two projects also highlight the changing international landscape around Balochistan’s mineral resources.
China already has a long-established presence in the province’s mining sector through the Metallurgical Corporation of China’s operation of Saindak. The Chinese company has been involved in the project for more than two decades, and the lease was extended until 2037.
At Reko Diq, however, the leading international partner is Canada’s Barrick, while the United States is increasingly becoming involved through financing and the supply of American equipment and services.
There have also been reports that Chinese companies could participate in some parts of the Reko Diq project, although such participation should not be treated as confirmed without an announcement from Barrick or the Pakistani government.
This could leave Pakistan navigating a complicated new mineral landscape in which Chinese, American, Canadian and other international companies have interests in different parts of the country’s mining economy.
For Islamabad, the competition could provide an opportunity to negotiate better financing, technology transfer, local employment and value addition.
But the success of that strategy will depend on whether Pakistan can provide a transparent and predictable investment environment.
The US Embassy has repeatedly called for a level playing field for American companies and has encouraged Pakistan to improve the conditions for foreign investors.
American officials have also acknowledged the security risks involved in operating in Balochistan and Khyber Pakhtunkhwa but said US companies remained willing to consider opportunities in Pakistan.
The emerging US interest in Reko Diq therefore goes beyond the mine itself.
Washington is seeking access to critical minerals at a time when the United States is attempting to diversify supply chains and reduce dependence on concentrated global sources of minerals and processing capacity.
Pakistan, meanwhile, sees its largely underdeveloped mineral resources as a potential new pillar of the economy.
Copper is particularly important because it is required for electricity networks, renewable energy infrastructure, electric vehicles, electronics and other technologies. Antimony and tungsten are also considered strategically important for industrial and defence applications.
Balochistan contains significant deposits of several of these minerals.
The question is whether Pakistan can turn that geological wealth into sustainable economic development.
For Reko Diq, that means more than extracting copper and gold.
It means building roads and infrastructure, training local workers, creating opportunities for Balochistan businesses, protecting water resources and ensuring that communities in Chagai see tangible benefits from a project that could operate for decades.
The project is therefore becoming a test not only of Pakistan’s ability to attract international capital but also of its ability to manage competing foreign interests in a strategically important sector.
With China already operating Saindak and the United States now positioning Reko Diq as a model of bilateral economic cooperation, Balochistan’s mineral resources are becoming increasingly important to the country’s relations with major global powers.
For Pakistan, that competition could bring investment and technology that the country needs.
But the real measure of success will be whether those investments translate into lasting economic benefits for Pakistan and, most importantly, for the communities living above the mineral wealth of Balochistan.
