The Japan Bank for International Cooperation (JBIC) is preparing to commit significant investment to the Reko Diq copper mine project in southwestern Pakistan’s Balochistan province. This initiative comes as Japan faces increasing pressure to secure a stable supply of copper, a critical mineral essential for various industries, including electronics and renewable energy.
The Reko Diq district’s controversial copper and gold mine project has drawn significant media attention. By some estimates, we’re actually facing a supply shortage of copper in just a few years. Japan’s participation is a reflection of Tokyo’s own strategic interests in preventing future resource shortfalls as the demand for copper grows across the world.
JBIC is likely to conclude a loan agreement of up to $500 million for the Reko Diq project by early 2026, according to our estimates. This investment will facilitate the construction and operation of the largest copper deposits in the world. The purpose of the project is to enhance the security of Japan’s resource supply. It hopes to increase economic coordination between Japan and Pakistan.
Komatsu, one of the largest Japanese companies, will play a direct role in the project through the provision of sophisticated mining equipment. With JBIC’s financial backing, they will bring skilled staff to make sure it succeeds. With the engagement of this partnership, we’ll support ensuring project implementation is done efficiently and in alignment with international practices.
Much of the improved outlook is based on expectations that the Reko Diq copper mine will produce enough for a sizable chunk of Japan’s increasing copper demands. With the energy transition, as our world shifts towards greener technologies and renewable energy sources, the need for copper will skyrocket. This increase is what makes the project a cornerstone of Japan’s economic strategy.
The Reko Diq project lies in a region full of lucrative minerals, such as gold and copper. If executed well, it can greatly enhance Pakistan’s emerging economy and tackle Japan’s surging industrial requirements. Japan is pouring money into this project to make sure they obtain critical resources. Second, it wants to keep its bilateral relationship with Pakistan as strong as possible.