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ISLAMABAD: The United States Export-Import Bank (Exim) will extend a $1.25 billion loan for the Reko Diq copper and gold project in Pakistan&#39;s Balochistan province, as part of a major financing plan aimed at strengthening American and allied supply chains, the Financial Times reported on Monday. Exim&rsquo;s chair, John Jovanovic, told the newspaper that the bank was preparing to deploy $100 billion to support global energy and minerals projects, marking a significant expansion of its mandate under President Donald Trump&rsquo;s plan for &ldquo;energy dominance.&rdquo; According to the report, the Reko Diq financing forms part of Exim&rsquo;s early set of deals, which also include a credit insurance guarantee covering $4 billion of US natural gas exports to Egypt. Jovanovic said the bank was focusing on securing supply chains for critical minerals, LNG and nuclear energy in an effort to reduce Western reliance on China and Russia. He said Exim was &ldquo;back in a big way&rdquo; and would play a central role in bringing &ldquo;US energy molecules to every corner of the globe.&rdquo; The loan for Reko Diq comes as the United States seeks to expand its footprint in global mining projects for minerals such as copper, which Washington views as essential for infrastructure, energy and technology industries. The White House has highlighted the need to diversify supply away from China, which dominates processing and exports of several strategic minerals. Reko Diq, being developed by Barrick Gold, is among the largest undeveloped copper and gold deposits in the world. The project is considered a key component of Pakistan&rsquo;s future mining sector growth and is expected to attract multi-billion-dollar foreign investment over the next decade. The Financial Times said Exim had authorized $8.7bn in new transactions in the year to September, excluding a previously approved $4.7bn loan for an LNG project in Mozambique. The bank still has $100bn in lending capacity authorized by the US Congress. Jovanovic said Exim was receiving strong demand for US LNG from Europe, Africa and Asia, and that a series of large supply deals would be announced soon. He added that, unlike some development banks, Exim does not have climate-related restrictions barring support for fossil fuel projects. The report noted that the bank is also moving to support nuclear energy projects in southeastern Europe, along with new mining ventures for uranium and other critical minerals.

Economy

The report says the Reko Diq financing forms part of Exim’s early set of deals, which also include a credit insurance guarantee covering $4 billion of US natural gas exports to Egypt.

Articles tagged with "Financial Times"

Exim Bank to lend $1.25B for Reko Diq as part of $100B global energy push: FT