Latest news with #USEximBank
Express Tribune
02-08-2025
- Business
- Express Tribune
Donors offer $5b for Reko Diq
Pakistan has received an overwhelming response from multinational donors and agencies, which have offered $5 billion in financing to execute the multibillion-dollar Reko Diq copper and gold mining project in Balochistan. Sources told The Express Tribune that the commitments received from foreign donors were more than the funding requirement for the Reko Diq project, which is estimated at $3 billion. They said that the donors included the Asian Development Bank (ADB), Islamic Development Bank (IDB), International Finance Corporation (IFC) and US Exim Bank. Development agencies from Germany and Denmark have also offered financing. According to sources, the financial close of the project is at an advanced stage and Petroleum Minister Ali Pervaiz Malik, backed by the Special Investment Facilitation Council (SIFC), is taking the lead and making aggressive efforts to expedite work, which will pave the way for exploring the entire potential of the mining sector. It is interesting to note that the US Exim Bank has offered no cap on financing and is ready to provide capital, which Pakistan and other partners desperately need. The Ministry of Petroleum recently organised a webinar in association with the US embassy to woo American investors to participate in mining projects in Pakistan. State-owned exploration giant Oil and Gas Development Company (OGDC) is a key partner in the Reko Diq project and efforts are underway to kick off work. It also helped arrange a mineral conference, which attracted financing offers. Pakistan is blessed with abundant mineral resources that hold immense potential for fuelling economic growth and industrial development. The country's vast reserves of minerals, including coal, copper, gold, iron ore, chromite and precious stones, provide a solid foundation for the mining sector to thrive and contribute to economic development. Despite its huge potential, the mineral sector currently contributes around 3.2% to the gross domestic product (GDP), with exports accounting for only 0.1% of the world's total. However, with increasing exploration, foreign investment and infrastructure improvements, the mining industry is poised for significant expansion. Pakistan's mineral-rich landscape covers an outcrop area of approximately 600,000 square kilometres. With 92 known minerals, 52 of which are commercially exploited, Pakistan produces an estimated 68.52 million metric tons of minerals annually. The sector supports over 5,000 operational mines and 50,000 small and medium enterprises (SMEs), providing direct employment to 300,000 workers. Some of the country's most notable mineral reserves include the world's second-largest salt mines, the fifth-largest copper and gold deposits and significant coal reserves. Furthermore, Pakistan holds vast quantities of bauxite, gypsum and precious stones such as ruby, topaz, and emerald, which offer considerable export potential. Globally, mineral resources play a crucial role in economic development. Many developed countries, including China, Italy, Turkiye, Spain and Brazil, have effectively leveraged their mineral wealth to fuel industrial growth, increase employment and enhance per-capita income. Pakistan's mineral sector holds similar promise. With strategic planning and investment, the country can improve trade, generate employment and facilitate infrastructure development, ultimately accelerating economic progress. The local mining sector is increasingly attracting foreign investment, with global firms eyeing the untapped mineral reserves. The Reko Diq copper and gold project, located in the Chagai district of Balochistan, has the world's largest untapped copper reserves and stands as a milestone for Pakistan's mining ambitions. The project, revived by Canada's Barrick Gold, is expected to start producing copper and gold by 2028, with an initial investment of $5.5 billion. According to Mark Bristow, CEO of Barrick Gold, which owns a 50% stake in the project, the reserves are expected to generate $74 billion in free cash flow over the next 37 years. The mine is anticipated to generate $2.8 billion in annual exports, create thousands of jobs and transform the local economy. A planned expansion will increase copper production to 400,000 tonnes and gold output to 500,000 ounces per year, with an additional investment of $3.5 billion. Under an intergovernmental transaction agreement, the federal cabinet has approved the sale of a 15% stake in the Reko Diq project to Saudi Arabia. This underscores the region's potential as a hub for foreign investment in the mining sector. Saudi Arabian mining company Manara Minerals will acquire the 15% stake, potentially involving an investment of $1 billion. Logistics for the Reko Diq mine will be managed through a railway track, which is being built in partnership with Pakistan Railways. Railway tracks will essentially entail moving mining supplies to Karachi and eventually exporting copper concentrate and gold.
TimesLIVE
05-05-2025
- Business
- TimesLIVE
Mozambique LNG project to launch by mid-year, says TotalEnergies CEO
TotalEnergies CEO Patrick Pouyanne said on Wednesday that partners on its long-delayed Mozambique LNG project have decided to move ahead and launch by the middle of the year. A nearly $5bn (R91.85bn) loan for the project was recently approved by US Exim Bank. Pouyanne told analysts on a call that the company is still waiting on some finance decisions, but could finance it with equity.
Express Tribune
18-04-2025
- Business
- Express Tribune
FinMin to discuss China debt
Listen to article Pakistan's Finance Minister Muhammad Aurangzeb is expected to take up the issue of rescheduling guaranteed debt with his Chinese counterpart in Washington next week, on the sidelines of the International Monetary Fund's (IMF) spring meetings. The finance minister is also likely to meet the managing director of the IMF and an assistant secretary of the US Treasury, according to government sources. Aurangzeb will meet Lan Fo'an, Finance Minister of China, on Wednesday during his six-day visit to attend the annual meetings. Finance ministry officials said one of the key issues will be Pakistan's pending request for China to reschedule $3.4 billion in debt for two years, in order to bridge a foreign financing gap. Secretary Finance Imdad Ullah Bosal, State Bank of Pakistan (SBP) Governor Jameel Ahmad, and Economic Affairs Secretary Kazim Niaz are also departing for the US on Sunday to participate in the spring meetings. Pakistan's Deputy Prime Minister Ishaq Dar had formally made the rescheduling request during his last visit to Beijing, but the deal remains pending. The government has asked the Export-Import (Exim) Bank of China to rearrange its loans. Earlier, in September last year, the finance minister had also written to the Exim Bank, requesting the rescheduling. This development comes on the heels of a $1.3 billion repayment of Chinese commercial debt, including $300 million paid this week. Pakistan is in talks with the Chinese bank for refinancing the loan. However, there is also a view within the government that Pakistan should not seek a renewal of this loan following an unexpected $1 billion boost from remittances in March, which totalled $4.1 billion. Aurangzeb is also scheduled to meet with the Finance Minister of Saudi Arabia, Mohammed Aljadaan. Unlike in previous years, when Pakistan would be granted meetings with top-ranking US Treasury officials, this time, a level-four US Assistant Secretary of the Treasury for International Finance, Robert Kaproth, may meet with the finance minister next week. While interaction with US authorities has gradually increased in recent weeks, no senior US official has met with Pakistani government representatives. However, last month, the National Security Advisor and US Secretary of State held phone conversations with Pakistan's deputy prime minister. Aurangzeb is also expected to meet James C Cruse, Acting President and Chairperson of the US Exim Bank, according to sources. The US Exim Bank has expressed willingness to extend around $1 billion in loans for the Reko Diq project, which faces a $3 billion financing gap. However, it sought preferential creditor statussomething Islamabad did not agree to previously. Last month, the government revised the total cost of the first phase of the Reko Diq copper and gold mines project to $6.8 billiona 58% increase due to rising prices and an expanded project scope. Of the $6.8 billion, $3 billion will be raised through debt. Negotiations for the debt are at an advanced stage and are being led by an arm of the World Bank Group, which is expected to provide $300 million in loans for the project. The remaining $3.7 billion will be contributed by the shareholders as equity investments, in accordance with their existing stakes. Aurangzeb may also meet officials of the US International Development Finance Corporation (IDFC) to discuss cooperation in Pakistan's privatisation programme, officials said. He is also expected to meet with Kristalina Georgieva, Managing Director of the IMF, to discuss progress on the $7 billion programme. Last month, Pakistan and the IMF reached a staff-level agreement for the $1 billion second tranche. However, the IMF has yet to announce a formal board meeting date for its approval. The minister may also hold meetings with IMF Assistant Director Nikolay Gueorguiev, Deputy Managing Director Nigel Clarke, and Jihad Azour, Director for the Middle East and Central Asia. Aurangzeb will also take part in an IMF-arranged panel discussion on Pakistan's medium-term revenue mobilisation strategy. So far, Pakistan's attempts to raise revenue have largely burdened the salaried class, while efforts to extract more from traders have failed. Under the IMF programme, provinces have passed new agricultural income tax laws, but these have yet to be operationalised. Aurangzeb is also expected to meet with Masato Kanda, President of the Asian Development Bank, and Ajay Banga, President of the World Bank Group. A meeting with Martin Raiser, Vice President of the South Asia Region at the World Bank, is also planned. One key event during the spring meetings includes a special briefing to embassies of the Climate Vulnerable Forumalso known as the Vulnerable 20 Club. Aurangzeb will meet with Mohamed Nasheed, Secretary General of the Forum. The V20's agenda focuses on addressing climate vulnerabilities in its 68-member countries, with an emphasis on climate finance, disaster risk reduction, and resilience-building. The group includes countries from Africa, Asia, the Caribbean, Latin America, the Middle East, and the Pacific, and aims to promote shared prosperity and sustainable development through coordinated global efforts. There will also be a meeting of the Coalition of Finance Ministers for Climate Action (CFMCA), which Aurangzeb is expected to attend. The finance minister will also speak at the Atlantic Council on Pakistan's economic prospects through 2025 and beyond. He will brief investors, invited by Jefferies International, on the economic outlook, fiscal and monetary developments, and IMF-related reforms. Additionally, he is scheduled to meet with tobacco firm Philip Morris International.
South China Morning Post
09-04-2025
- Business
- South China Morning Post
US steps up competition against China with US$4.7 billion loan for Mozambique gas project
The construction of a multibillion-dollar liquefied natural gas plant in Mozambique is set to resume after the administration of US President Donald Trump approved a US$4.7 billion loan in a move to bolster American companies against their Chinese competitors in Africa. Advertisement Last month, the US Export-Import Bank (Exim) reapproved the loan to support the export of American equipment and services for the development and construction of the US$20 billion liquefied natural gas (LNG) project on the Afungi Peninsula in northern Mozambique under the French oil company, TotalEnergies. 16:09 How China is reshaping its economic ties with Africa How China is reshaping its economic ties with Africa It is a major feat for the American export credit agency. The loan is the biggest in Africa in US Exim Bank's 91-year history as America moves to invest in strategic industries to counter China's influence on the continent It entails providing a loan guarantee for the supply of American equipment for use by TotalEnergies to produce LNG. The financing is part of Washington's aim to make American companies and suppliers more competitive, especially against Chinese and Russian companies. Advertisement US Exim Bank last month stated that before the 2019 board approval of the LNG project, 'Exim was told that China and Russia originally were slated to finance the deal, a factor important to the United States' national security interests, allowing the transaction to be included as part of Exim's China and Transformation Exports Programme (CTEP)'.
