US invests $1.3B in Pakistan's Reko Diq mine, the world's largest gold & copper reserve, as part of strategic "Project Vault" for critical minerals.
Reko Diq Mine Deal: US Targets Balochistan Deposits to Secure Critical Minerals Supply (Image: File)
The United States, through its Export-Import Bank (EXIM), will invest $1.3 billion in Pakistan's Reko Diq mine, the State Department announced Wednesday. This investment is the only non-US commitment under the newly launched "Project Vault," a strategic initiative designed to reshape the global critical minerals market by securing supply chains for resources like copper and gold.
The Reko Diq mine, located in Pakistan's Balochistan province, is one of the world's largest undeveloped copper and gold reserves. According to geological calculations, the site has roughly 5.9 billion tonnes of ore with an average copper grade of 0.41%, as well as 41.5 million ounces of gold reserves. The deposit is situated within the Chagai volcanic belt, a mineral-rich region near the border with Afghanistan. The project has been historically mired in a major international legal dispute concerning mining rights.
The $1.3 billion financing for Reko Diq falls under "Project Vault," an initiative announced by the Trump administration on February 2, 2026, and led by the EXIM Bank. The project received an initial EXIM loan authorization of $10 billion to establish a US Strategic Critical Minerals Reserve. Among several domestic US transactions, the Reko Diq investment stands out as the sole foreign investment in the portfolio, underscoring the deposit's global strategic importance. The EXIM Bank has authorized a total of $14.8 billion in Letters of Interest for critical minerals projects in the past year.
Reko Diq's development has been stalled for over a decade due to a high-stakes legal battle. In 2011, a dispute arose between the Government of Pakistan and the Tethyan Copper Company (TCC)—a joint venture between Chile's Antofagasta and Canada's Barrick Gold. TCC alleged a breach of the Australia-Pakistan Bilateral Investment Treaty and an illegal denial of mining rights. Geological estimates place the site's gold reserves at 41.5 million ounces and its ore at about 5.9 billion tonnes with an average copper grade of 0.41%.
The US investment signals a strategic pivot to secure critical mineral resources outside its borders, specifically targeting metals essential for advanced technology, renewable energy infrastructure, and defense applications. The US hopes to directly impact and diversify the global copper and gold supply chain by anchoring "Project Vault" with the Reko Diq purchase, thereby lowering long-term reliance on other leading producers. The investment offers Pakistan a significant economic opportunity to build a flagship mining operation with significant export potential.
A: The Reko Diq mine is situated close to the Afghan border in the Chagai District in the western Pakistani province of Balochistan.
A: The United States, via the EXIM Bank, has authorized a $1.3 billion investment in the Reko Diq mining project.
A: "Project Vault" is a US strategic initiative led by EXIM Bank to secure a domestic and worldwide supply of key minerals, with an initial $10 billion loan authorization.
