ISLAMABAD: The Asian Development Bank will provide a $410 million financing package to help develop Pakistan’s Reko Diq copper mine, one of the world’s largest untapped deposits, which will be operated by Barrick Gold, two sources told Reuters on Thursday.

Islamabad hopes the project will serve as a springboard to draw more foreign interest to its mineral sector, particularly to exploit rare earth deposits. Pakistan has already attracted interest from the Trump administration and offered future concessions to US companies.

The loans and a financing guarantee will support development of Reko Diq, which is expected to produce copper and gold from 2028 and generate about $70 billion in free cash flow over its lifespan.

The financing is composed of two loans totaling $300 million to Barrick and a $110 million financing guarantee for the government of Pakistan, both sources said ahead of the official announcement.

The $6.6 billion project in Balochistan is 50 percent owned by Barrick, with the other half held by the federal and provincial governments.

ADB, the petroleum ministry and Barrick did not immediately respond to requests for comment.

The project aims to raise upwards of $2 billion and has a previous agreement for $700 million in financing from the International Finance Corporation, the World Bank’s private investment arm.

The project’s developers are in talks with other prospective financiers, including the US Export-Import Bank, Export Development Canada and Japan’s JBIC and expect to sign term sheets this quarter, project director Tim Cribb told Reuters in April.

Reko Diq, delayed for years by a legal dispute that was settled in 2022, will produce 200,000 metric tons of copper annually in its first phase, rising to 400,000 tons after an expansion.

Barrick says the mine could operate beyond its 37-year life through upgrades and further exploration.

ISLAMABAD/KARACHI: Pakistan’s Meteorological Department on Thursday forecast more heavy rains across the country until Aug. 29, as the nation reels from devastating monsoon downpours and flash floods that have killed at least 458 people since Aug. 15.

Torrential rains that started last week have inundated large swathes of the northwestern Khyber Pakhtunkhwa (KP) province and caused hill torrents and flash floods, with 394 people killed since Aug. 15. Gilgit-Baltistan reported 26 deaths, Azad Jammu and Kashmir 20, and Sindh 14 over the same period. Karachi, the financial hub and southern port city, recorded 17 deaths between Aug. 19 and 20 as flooded roads and underpasses left thousands of commuters stranded.

Cumulatively, since the start of the monsoon season on June 26, at least 771 people have died and 993 have been injured nationwide. KP has reported the highest number of casualties at 465, followed by Punjab with 165, Gilgit-Baltistan with 45, Sindh with 42, Balochistan and Azad Kashmir with 23 each, and Islamabad with eight.

In its latest advisory, the Met Office said strong monsoon currents from the Arabian Sea and Bay of Bengal were likely to penetrate upper parts of the country from Aug. 22. A westerly wave was also expected to reach the same regions by the night of Aug. 22.

“Torrential rains with wind/thundershower predicted in upper and central parts from 23rd to 27th with occasional gaps,” the Met Department said. “Heavy rains expected in Sindh and eastern/southern Balochistan from 27th to 29th August.”

The advisory warned of flash floods in local streams of Chitral, Swat, Shangla, Kohistan, Abbottabad, Charsadda, Nowshera, Murree, Galliyat, Islamabad/Rawalpindi, northeastern Punjab, Azad Kashmir and the hill torrents of Dera Ghazi Khan between Aug. 23-26.

It also cautioned of possible urban flooding in low-lying areas of Lahore, Gujranwala, Faisalabad, Sialkot, Peshawar, Nowshera, and Mardan from Aug. 23-27. 

“Landslides/mudslides may cause roads closure in the vulnerable hilly areas of Khyber Pakhtunkhwa, Gilgit-Baltistan Murree, Galliyat and Kashmir during the forecast period,” the advisory said.

Pakistan is one of the most climate-vulnerable nations in the world, despite contributing less than 1 percent of global greenhouse gas emissions. Annual monsoons are vital for agriculture and water needs but in recent years have unleashed destructive flooding and landslides. In 2022, unprecedented rainfall and glacier melt left more than 1,700 people dead and inflicted an estimated $30 billion in losses, according to the government.

PM’S OUTREACH 

Meanwhile, Prime Minister Shehbaz Sharif has reached out to leaders across the political spectrum to discuss the flood emergency, including Bilawal Bhutto Zardari, chairman of the Pakistan Peoples Party (PPP), which governs Sindh province. 

“The prime minister expressed grief over torrential rains, urban flooding, and the loss of precious lives in southern Sindh, particularly Karachi,” the Prime Minister’s Office said in a statement. “The prime minister offered the federal government’s full support to the Sindh government in dealing with the emergency situation.”

Sharif directed the National Disaster Management Authority (NDMA) to remain in close contact with the Sindh government, extend all possible assistance to the Provincial Disaster Management Authority, and ensure advance warnings to residents about potential risks.

The premier also spoke to Hafiz Naeem ur Rehman, chief of Jamaat-e-Islami, and Dr. Khalid Maqbool Siddiqui, head of the Karachi-based Muttahida Quami Movement-Pakistan (MQM-P) and federal education minister, regarding the flood situation and relief operations.