The Japan Bank for International Cooperation (JBIC) and four other major Japanese companies are preparing to invest in Pakistan’s $2.7 billion Reko Diq copper mine project. This partnership is emblematic of Japan’s forward-looking policy towards gaining access to critical mineral resources. This smart play comes in anticipation of a looming copper supply crisis in the next few years. In response, Japan has stepped up its game to gather these resources.
The multibillion-dollar copper and gold mine project in the Reko Diq district of southwestern Balochistan province is poised to do so. Secondly, it will contribute to meeting the growing demand for copper. The JBIC is expected to support the initiative with a large preferential loan. We expect this loan to close in early 2026. This shift in commitment marks the importance of the development and operation of the Reko Diq (TCC) project for the Government of Pakistan. It dramatically supports Japan’s long-term mineral supply strategy overall.
Japan’s interest in the Reko Diq project reflects a broader trend of countries seeking to secure essential minerals as global demand escalates. Copper, for one, is gaining appreciation as a vital resource needed in ample quantities to develop virtuous industries like electronics and renewable energy. With major supply constraints on the horizon, Japan’s investment is a smart move to preemptively avoid coming shortages.
Komatsu, a global industrial giant headquartered in Japan, is posing to play a significant role in developing the project, having agreed to supply key equipment. Komatsu intends to make specialists frequently available at the mine. Beyond this operational support, they’ll help ensure best practice implementation throughout the development process.
The Reko Diq project is extremely important because of its huge mineral production. Moreover, it can help revolutionize Pakistan’s creaking mining sector. By attracting foreign investment and expertise, the project may lead to advancements in local mining practices and contribute positively to the region’s economy.