The European Union’s lending arm has expressed interest in investing in Pakistan’s Reko Diq gold and copper mine. The European Investment Bank wants access to critical minerals from this site. Consequently, Europe wants a piece of mineral-rich Reko Diq project to support its green and digital transitions. Director General Minerals Nawaz Ahmed Virk spoke at the EU Pakistan Business Forum. He said the mine’s reported worth of 6 trillion dollars was highly exaggerated. However, the site still possesses huge mineral potential.

The Reko Diq project ranks among the largest undeveloped copper and gold deposits in the world. It has emerged as a key focus for international investors. European Investment Bank official Marco Arena confirmed the institution’s interest. The bank wants to finance enabling infrastructure for the project. It also seeks a share in the off take of critical minerals. Therefore, Europe wants a piece of mineral-rich Reko Diq project to secure its supply chains. The EU needs these minerals for electric vehicles and renewable energy technologies.

Pakistan has offered tax incentives to attract foreign investment. These include exemptions on income during the development phase. However, contractors have raised concerns over sales tax and withholding tax applications. Ongoing discussions between the Ministry of Energy and the Finance Division continue. They may defer these levies until production begins. The project has also faced setbacks. Barrick Gold recently slowed development activities due to rising security risks. The company will continue reviewing the project until mid 2027.

Initial estimates place the first phase cost between 5.6 billion and 6 billion dollars. The second phase will require an additional 3.3 to 3.6 billion dollars. First production is currently targeted by the end of 2028. Timelines may shift depending on evolving conditions.