US-Pakistan Strengthen Ties with $500 Million Critical Minerals Investment
A new partnership between a US metals company and Pakistan’s Frontier Works Organisation (FWO) signals a deepening of US-Pakistan relations, with an initial investment of approximately $500 million earmarked for Pakistan’s critical minerals sector. The agreement was formalized through a Memorandum of Understanding (MoU) signed on Sunday at the Prime Minister’s House, with acting Deputy Chief of Mission Zach Harkenrider accompanying a delegation from US Strategic Metals (USSM).
US Chargé d’Affaires Natalie Baker highlighted the MoU as evidence of the “strength of the US-Pakistan bilateral relationship that will benefit both countries.” She further noted that prioritizing such agreements aligns with the policy of the US President Donald Trump’s administration,recognizing the importance of critical mineral resources to American security and prosperity.
The USSM delegation visited Pakistan to explore opportunities for expanding mining operations, assessing potential value addition to mineral resources, and developing supporting infrastructure. Meetings were held with key Pakistani officials including the Prime Minister, Chief of Army Staff, Minister of Petroleum, and Minister of Commerce, during which the delegation received briefings on Pakistan’s considerable mineral reserves – including copper, gold, and rare earth elements.
Alongside the USSM-FWO MoU focusing on the development and processing of critical minerals, including rare earth elements (REEs), a second MoU was signed between the National Logistics Corporation of Pakistan and Mota-Engil Group, a global engineering and construction firm. Mota-Engil aims to establish long-term partnerships, contributing to local job creation, technology transfer, and sustainable development.
The initial phase of the partnership will involve the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and REEs.
This investment builds on recent improvements in US-Pakistan trade relations. In July, the two nations concluded a trade deal resulting in a reduction of reciprocal tariffs from 29% to 19%. Prior to that, an agreement was reached allowing collaboration on developing Pakistan’s oil reserves. US officials have consistently underscored Washington’s strategic interest in pakistan’s mineral sector, recognizing critical minerals as essential raw materials for advanced technologies.
