Pakistan has secured a landmark $500 million investment from US-based US Strategic Metals (USSM) to develop its critical minerals sector, a move that officials are calling a significant milestone in deepening economic cooperation between the two countries.
The agreement was formalized through a Memorandum of Understanding (MoU) signed on Monday between USSM and Pakistan’s Frontier Works Organization (FWO), the country’s largest miner of critical minerals. The partnership aims to establish a state-of-the-art poly-metallic refinery in Pakistan, focusing on processing essential minerals such as antimony, copper, gold, tungsten, and rare earth elements (REEs). These materials are crucial for advanced manufacturing, clean energy technologies, and defense applications.
This initiative forms part of a broader global effort to diversify supply chains for critical minerals, reducing reliance on traditional sources while enhancing supply resilience. The project is expected to create numerous jobs, boost local economies, and position Pakistan as a key player in the global minerals market.
Prime Minister Shehbaz Sharif, along with senior government officials, met with the USSM delegation to discuss the strategic importance of Pakistan’s mineral wealth. The discussions highlighted how tapping into these resources could play a vital role in global technological progress and energy transitions. The partnership reflects a growing commitment by both nations toward sustainable development and long-term economic growth.
The US Embassy in Islamabad welcomed the deal, emphasizing its potential to strengthen economic relations. Acting Deputy Chief of Mission Zach Harkenrider, who accompanied the USSM delegation, noted that the agreement represents a step forward in fostering bilateral ties and advancing mutual interests. Similarly, US Chargé d’Affaires Natalie Baker highlighted the strategic value of such collaborations, underscoring that President Donald Trump’s administration had prioritized agreements involving critical minerals due to their significance for national security and global prosperity.
Pakistan’s mineral reserves, estimated to be worth trillions of dollars, are largely concentrated in Balochistan, a province beset by insurgency and security challenges. In response, the US State Department recently designated the Balochistan National Army and its militant wing as foreign terrorist organizations. Additional deposits have been discovered in Sindh, Punjab, and Khyber Pakhtunkhwa, further expanding the country’s resource potential.
Several global mining firms, including Canada’s Barrick Gold, which holds a 50% stake in the Reko Diq gold mine, are already active in the region. Monday’s agreement is expected to attract more American investors, exploring avenues for sustainable extraction, processing, and export of minerals.
The partnership is set to commence immediately with the export of readily available resources, including antimony, copper, gold, tungsten, and rare earth elements. Later phases will involve infrastructure development and value-added processing facilities aimed at maximizing the economic benefits from these resources.
With this deal, US officials believe that more companies will be encouraged to invest in Pakistan’s mining and minerals sector. For Pakistan, unlocking the potential of its mineral reserves represents not only a pathway out of its financial difficulties but also an opportunity to transform its economic landscape and strengthen its role on the global stage.
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