A U.S. investment in Pakistan is set to advance the country’s critical minerals industry. Missouri-based U.S. Strategic Metals signed a $500 million agreement with Pakistan’s Frontier Works Organization. The deal will fund mining, refining, and value-added projects, highlighting America’s growing role in global critical minerals supply chains.
The U.S. investment comes after recent trade talks between Washington and Islamabad aimed at expanding bilateral trade. Additionally, by establishing a poly-metallic refinery in Pakistan, U.S. Strategic Metals will enhance processing capabilities for copper, gold, tungsten, antimony, and rare earth elements. These minerals are crucial for advanced manufacturing and energy technologies.
Prime Minister Shehbaz Sharif met with the U.S. delegation to discuss project plans and opportunities for long-term collaboration. Both sides emphasized developing local capacity, exporting minerals efficiently, and undertaking large-scale mining initiatives. The U.S. investment is expected to accelerate these efforts and support Pakistan’s economic growth.
Additionally, a second agreement involved Pakistan’s National Logistics Corp and Portugal’s Mota-Engil Group. This partnership focuses on engineering and infrastructure to support mining and mineral processing projects. Together, these agreements aim to modernize the industry and attract further foreign investment.
U.S. officials praised the deals, noting that the U.S. investment strengthens bilateral economic relations. However, these projects will allow American companies to access essential minerals while helping Pakistan reduce its reliance on foreign loans and improve its trade balance. Analysts expect the U.S. investment to increase the export of critical minerals significantly over the coming years.
Most of Pakistan’s mineral wealth lies in Balochistan, which has faced security challenges. Despite the risks, U.S. Strategic Metals plans to work closely with local authorities to ensure safe and sustainable operations. Additional reserves exist in Sindh, Punjab, and Khyber Pakhtunkhwa, offering ample opportunities for exploration and development.
Nevertheless, several companies already operate in Pakistan’s mining sector, including Canada’s Barrick Gold at the Reko Diq mine. The U.S. investment adds momentum to this growing industry and demonstrates America’s commitment to global critical minerals access.
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