Pakistan’s $9bn copper-gold mine becomes key leverage in US tariff talks

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A multibillion-dollar copper and gold mining project in Pakistan’s remote Balochistan province has become a critical bargaining chip in the country’s bid to ease harsh tariffs imposed by the Trump administration, with the project’s operators highlighting its deep US investment ties and strategic value, the Financial Times reported.

Tim Cribb, project director at Canadian mining giant Barrick Gold, which is co-developing the $9 billion Reko Diq mine, told the Financial Times that the mine’s extensive use of US financing, equipment, and solar energy tech makes it aligned with the goals of Washington’s current trade and foreign policy priorities.

“When you think about what [the Trump administration] are trying to achieve with these tariffs, this project actually ticks a lot of boxes,” said Cribb.

A strategic project amid global resource race

Reko Diq, expected to become one of the world’s largest copper-gold mines by the time it begins operations in 2028, is now being positioned as part of the broader geopolitical competition over access to critical minerals. The US has recently signed similar “minerals deals” with countries like Greenland, the Democratic Republic of Congo, and Uzbekistan to secure supplies of materials essential to technologies including electric vehicles and semiconductors.

Cribb’s remarks follow a call between Pakistan’s Foreign Minister Ishaq Dar and US Secretary of State Marco Rubio this week, during which Rubio raised “prospects for engagement on critical minerals,” according to a US State Department readout.

The US imposed 29 percent tariffs on Pakistan on April 2 as part of its sweeping global tariff realignment under President Donald Trump. A week later, the administration paused the tariffs for 90 days to allow for negotiations.

US financing and supply chain links

Barrick, which is listed on the Toronto and New York stock exchanges, owns 50 percent of the project, while the remaining half is held by the government of Balochistan and three federal Pakistani state-owned enterprises. To fund the mine’s $4.5 billion first phase, Barrick is seeking up to $1 billion in loans from the US Export-Import Bank, alongside additional support from Canada, Japan, Saudi Arabia’s Manara Minerals, and development banks.

This week, the World Bank’s International Finance Corporation confirmed a $300 million loan to the project.

Cribb emphasized that the mine will be powered in part by solar energy, with Barrick sourcing panels “primarily from the US,” despite cheaper Chinese alternatives. “When you look at the lending pool and commitments we make in terms of responsible investment, we will end up going US,” he said.

The mine’s copper output will be exported via Port Qasim in Karachi, avoiding the Chinese-financed Gwadar port in Balochistan due to security concerns.

Security and logistics challenges

The mine’s location near the borders with Afghanistan and Iran poses persistent security challenges. Just last month, a train was hijacked in Balochistan by separatist militants, briefly holding 400 passengers hostage—an incident that underscored the region’s volatility.

Despite this, Barrick remains optimistic about financing the infrastructure required to move output from the mine to the coast. CEO Mark Bristow said the company expects to raise $500 million to $800 million by the second half of 2025 to build rail and transport networks.

Copper offtake agreements are expected to go primarily to the project’s lenders, with interest from Europe, Japan, and Saudi Arabia. Manara Minerals is in talks to acquire a 10–20 percent stake in the project, with Saudi officials reportedly more interested in securing copper output than equity alone.

Refining debate and local economic impact

Pakistani Prime Minister Shehbaz Sharif has called for domestic refining of raw materials to boost industrialization. However, Cribb and Bristow stated that copper refining is not feasible under the current plan due to the volume and infrastructure required.

Refining would need 600,000 tonnes of annual copper concentrate output—far beyond Reko Diq’s expected capacity. The country also lacks the affordable and reliable power needed for such operations, they added.

Looking beyond gold

In a symbolic shift reflecting the company’s growing focus on copper and diversification beyond gold, Barrick has proposed renaming itself “Barrick Mining.”

The Reko Diq mine, with an expected 42-year production lifespan, could serve as a flagship example of how resource diplomacy and strategic investments are now central to international trade negotiations—particularly as countries like Pakistan seek to redefine their roles in a shifting global economy.