Pakistan secures $500m US investment in critical minerals

• US Strategic Metals signs MoU with Pakistan’s FWO.
• Envoy highlights strength of US-Pakistan bilateral ties.
• MoU focuses on critical minerals for advanced technologies.

ISLAMABAD: Pakistan is set to receive a landmark investment of around $500 million in its critical minerals sector under a newly signed agreement with United States Strategic Metals (USSM), the Prime Minister’s Office announced on Monday.

The commitment follows the signing of two Memoranda of Understanding (MoUs) at the Prime Minister's House during the visit of a high-level US delegation, which included representatives from USSM and Mota-Engil, a global mining and infrastructure group.

The agreements cover cooperation in the development and processing of critical minerals, including rare earth elements (REEs), as well as logistics services.

The Frontier Works Organisation (FWO), Pakistan’s largest miner of critical minerals, inked a landmark MoU with USSM, a leading US-based processor, recycler and miner. The deal establishes a framework for collaboration across a range of strategic minerals essential for the defence, aerospace, and technology industries.

Under the agreement, the partnership will begin with the immediate export of minerals such as antimony, copper, gold, tungsten, and rare earth elements, while laying the groundwork for establishing USSM’s proprietary poly-metallic refinery in Pakistan. The facility will produce intermediate and finished products to meet the rising demand of the US market.

The USSM, based in the state of Missouri, is focused on producing and recycling critical minerals, which the United States Department of Energy has defined as essential in a variety of technologies related to advanced manufacturing and energy production.

Prime Minister Shehbaz Sharif witnessed the signing alongside Deputy Prime Minister and Foreign Minister Ishaq Dar, Chief of Army Staff Field Marshal Asim Munir, and federal ministers. The delegation also held separate meetings with the COAS, petroleum minister, and commerce minister to review Pakistan’s mineral wealth, including copper, gold, and REEs.

According to the statement issued by the Prime Minister's Office, the cooperation aims to unlock new opportunities in sustainable growth, technology transfer, and job creation, while prioritising environmental responsibility.

Future steps will include the formation of dedicated teams to identify critical minerals for export, scale up exploration and processing operations, and explore innovative financing solutions such as tokenisation of minerals to attract global investors, the statement added.

Separately, the National Logistics Corporation (NLC) signed an MoU with Mota-Engil Group to explore long-term partnerships in engineering and construction. The global firm expressed interest in aligning with Pakistan’s infrastructure development goals and expanding its presence in West Asia through local job creation, technology sharing, and sustainable practices.

The statement described the delegation’s visit and the MoU signings as a milestone in Pakistan’s efforts to attract global investment in the mining and logistics sectors, highlighting strengthened economic cooperation between Islamabad and Washington.

'Step forward in strengthening ties'

Separately, US Chargé d’Affaires Natalie Baker described the signing of the agreements as a step forward in strengthening bilateral relations and noted that such cooperation would bring benefits to both countries.

She added that the Trump administration has prioritised forging agreements on critical minerals due to their significance for economic and energy security.

"We look forward to seeing future agreements between US companies and their counterparts in the critical minerals and mining sector in Pakistan," the US envoy added.

In recent months, Washington’s ties with Islamabad have improved following US President Donald Trump's intervention in armed conflict between Pakistan and India, which resulted in a ceasefire. Pakistan also clinched a "landmark deal" with the US, negotiating a reduction in reciprocal tariffs from 29% to 19%.

In April 2025, a senior US official emphasised the potential of Pakistan’s vast mineral resources and said it can bring significant economic benefits for both Islamabad and Washington.

Eric Meyer, a senior bureau official (SBO) for the Bureau of South and Central Asian Affairs at the US State Department, led a delegation to Islamabad to advance US interests in Pakistan’s critical minerals sector, enhance economic cooperation, and reaffirm the importance of counterterrorism collaboration.