Islamabad:
Pakistan and the United States signed two memoranda on understanding (Mous) aimed at developing and treating critical minerals, including rare earth elements (REEs), in a major development that is seen as part of the recent reset in bilateral ties.
Mous was signed between American Strategic Metals (USSM) and Frontier Works Organization (FWO) – Pakistan’s largest mines of critical minerals; and Mota-Engil Group (MEG) and National Logistics Corporation of Pakistan (NLCP).
Currently, a delegation that includes senior officials from USSM and MEG is visiting Pakistan to explore the possibilities of expanding mining in Pakistan and to assess the potential for value added in mineral resources and the development of supporting infrastructure.
The delegation held a meeting with Prime Minister Shehbaz Sharif in the Prime Minister’s House, where Deputy Prime Minister and Foreign Minister Ishaq Dar, head of Army Staff Field Marshal Syed Asim Munir, the Minister of Petroleum and the Minister of Commerce were also present.
During the meeting, the delegation expressed emergency preparedness to invest in the establishment of value added facilities in the country, improve mineral processing capacity and develop large infrastructure projects linked to the mining sector.
The Mous were signed in the Prime Minister in the presence of acting Deputy Chief of Mission at the US Embassy in Islamabad, Zach Harkenrider, accompanied a delegation. US Chargé d’Affaires Natalie Bakertermed with an example of the strength of the American Pakistani bilateral relationship.
According to a statement from the US embassy, USSM, based in St Louis, Missouri, “specializes in the production and recycling of critical minerals that the US Ministry of Energy has identified as essential for advanced production and energy production.”
The MOU -signed between USSM and FWO creates a framework for collaboration across a number of critical minerals that are essential to the defense, aerospace and technology industry, says a press release issued here.
The partnership immediately begins with the export of easily accessible minerals from Pakistan, including antimony, copper, gold, tungsten and rare earth elements, officials said. The first phase of this agreement is scheduled for approximately $ 500 million of investments in Pakistan’s critical mineral sector.
This collaboration lays the basis for scaling up against the creation of a USSM proprietary, very flexible poly-metallic refinery in Pakistan. The refinery will produce intermediate and finished products dedicated to meeting the rapidly growing demand in the US market.
The next steps include the formation of dedicated teams to explore the full potential of Pakistan’s huge resource base, identify critical minerals for immediate export and build an anchor position for a long -term partnership in investigation, extraction and treatment.
It is important that cooperation will prioritize sustainability, profitability and environmental responsibility to ensure benefits for the people of both nations. “Both parties will also investigate innovative funding and digital solutions such as tokenization of critical minerals, enabling global investors to participate in Pakistan’s mineral wealth and further accelerate transparency, liquidity and value creation.”
Mou between NLCP and EGP-a Global leader in engineering and construction-with the purpose of building long-term partnerships that utilize EGP’s global know-how, while creating value locally through job creation, technology transfer and sustainable development.
Officials from both sides said the signing of De Mous marked a milestone in Pakistan’s efforts to attract global investments in mining and logistics. The MOUs also strengthened the bilateral relationship, while it locked new opportunities for sustainable growth, technical transfer and job creation.
“[The MoU are] Another example of the strength of the US bilateral relationship that will benefit both countries, “said the US Chargé d’Affaires Natalie Baker. She added that the Trump administration has prioritized such agreements considering the importance of critical mineral resources of US security and prosperity.
The deal comes at a time when Islamabad and Washington are trying to calibrate ties again after years of mistrust. A key factor that runs this commitment is Pakistan’s unused mineral wealth, which the government hopes to develop with foreign investment. Analysts point out that FWO’s involvement of FWO, an arm from the Pakistani army, emphasizes the central role of resources in resource development.
The signing follows Army Chief Field Marshal Asim Munir’s meeting with US President Donald Trump in June, which many considered a breakthrough in revival of strategic dialogue. Both sides then agreed to expand cooperation in trade, investment and security, with critical minerals identified as a priority area.
Officials say Monday’s Mous signing could pave the way for more US companies to enter Pakistan’s mining and energy sectors, which injures much needed investments at a time when the country is seeking to stack the economy.
Pakistan and the American connections have often been seen as transnational and primarily in the past he has been safety -driven. Islamabad has been pressing for decades to diversify relations with Washington in addition to security and Afghanistan.
