The Asian Development Bank (ADB) has approved funding to develop one of the world’s largest unexploited copper deposits in southwest Pakistan – but critics warn the plan to extract the key energy transition metal in a region blighted by insurgency and human rights violations carries “excessive risks”.
On Friday, the ADB confirmed it had approved a $410-million financial package for the Reko Diq copper-gold mine, which will be operated by Canadian mining giant Barrick Mining Corporation.
The mine is located in Pakistan’s Balochistan province, which forms part of a wider region of the same name with a distinctive cultural identity straddling Pakistan, Afghanistan and Iran.
Balochistan is Pakistan’s largest and poorest province, despite its vast natural resources including copper – a key ingredient in virtually all clean energy technology that is pivotal for the global shift towards electrification.
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Local groups in Balochistan have led a decades-long struggle against the Pakistan government for greater autonomy for the Baloch people.
Militant insurgencies have escalated in recent years and the Pakistan government has responded with a violent crackdown and counter-terrorism measures which UN experts say violate human rights. Earlier this year, they condemned the enforced disappearance of thousands of people and alleged widespread torture, extrajudicial killings and indiscriminate violence by security forces, especially against peaceful protesters and Baloch human rights defenders.
Strategy to support ‘responsible’ minerals value chains
The ADB said the mine will contribute to the clean energy transition by helping to meet rising copper demand and will spur economic development in the region by creating thousands of jobs.
It is the first mining project the Philippines-based bank has supported since launching a strategy to develop “responsible and sustainable critical minerals-to-manufacturing value chains” in Asia-Pacific.
The ADB funding for the mine comes on top of $700m in loans approved by the International Financial Corporation (IFC), the World Bank’s private arm, earlier this year.
Before the ADB decision, a coalition of civil society groups called on international financiers in an open letter to reconsider support for the project, citing “excessive” security, human rights and environmental risks.
“In a highly militarised region, where critical voices are routinely silenced, investing in such a large-scale, controversial project is a recipe for disaster,” said Tala Batangan, Asia regional coordinator for the Coalition for Human Rights in Development.
In a lengthy response published on its website, mining company Barrick rejected the accusations. It said the company is “committed to responsible mining and sharing the benefits of its operations with local stakeholders and partners, based on open and transparent engagement and the highest environmental and social safeguards”.
An ADB spokesperson said: “We recognise that mining is a complex sector. We listen closely to all concerns raised by our stakeholder groups including civil society organisations, and we will respond to their correspondence in due course.”
The Reko Diq copper and gold mine
Located in a sparsely populated,