Pakistan entered into a Memorandum of Understanding (MoU) with U.S. Strategic Metals (USSM), an American metals company, on Monday, involving a $500 million investment plan. Pakistan’s Frontier Works Organization, the nation’s largest extractor of critical minerals, signed the memorandum of understanding with Missouri-based U.S. Strategic Metals to collaborate on initiatives, including the establishment of a poly-metallic refinery in Pakistan.
USSM specializes in the production and recycling of critical minerals, which the U.S. Department of Energy identifies as vital components in numerous technologies tied to advanced manufacturing and energy generation.
The agreement follows a trade pact finalized between Washington and Islamabad last month, which Pakistan anticipated would draw U.S. investment into its mineral and oil sectors.
Another agreement was signed between Pakistan’s National Logistics Corporation and Portugal’s major engineering and construction firm, Mota-Engil Group.
According to a statement from Pakistan PM Shehbaz Sharif’s office, he held discussions with delegations from both U.S. Strategic Metals and Mota-Engil regarding Pakistan’s mineral wealth, including copper, gold, rare earth elements, and other valuable resources.
The statement noted that both parties conveyed a willingness to establish value-added infrastructure, expand mineral processing capabilities, and launch large-scale mining-related projects. “The partnership will begin immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and rare earth elements,” it added.
The U.S. embassy in Pakistan stated that the signing serves as further testament to the strong U.S.-Pakistan bilateral ties, bringing mutual benefits to both nations. Earlier this year, Prime Minister Sharif asserted that Pakistan holds mineral reserves valued in the trillions of dollars, and attracting foreign investment in this sector could be key to resolving the country’s long-standing financial challenges and reducing its reliance on substantial foreign loans.
The collaboration is expected to commence immediately with the export of readily accessible minerals from Pakistan, such as antimony, copper, gold, tungsten, and rare earth elements. The initial phase of the agreement outlines an estimated $500 million investment into Pakistan’s critical minerals industry.
Bilateral ties between Pakistan and the United States have been strengthening, marked by recent trade agreements. In July, Islamabad secured a reduction in reciprocal tariffs from 29% to 19% as part of a newly concluded trade deal between the two countries.
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