Pakistan, US sign $500mn MoU to boost cooperation in critical minerals

Pakistan and the United States (US) have signed a memorandum of understanding (MoU) worth $500 million to strengthen cooperation in the critical minerals sector, marking a step toward deeper economic and strategic engagement between the two countries.

The MoU was signed between US Strategic Metals (USSM) and Pakistan’s Frontier Works Organisation (FWO) at Prime Minister House on Monday, according to a statement from the US embassy.

“Embassy Islamabad Acting Deputy Chief of Mission Zach Harkenrider accompanied a delegation led by US Strategic Metals to sign a memorandum of understanding with Pakistan’s Frontier Works Organisation at Prime Minister House today.

“Speaking about the MOU signing, Chargé d’Affaires Natalie Baker said, “This signing is yet another example of the strength of the US-Pakistan bilateral relationship that will benefit both countries,” the embassy said in its press release.

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

Speaking about the importance of such bilateral agreements, CDA Baker added, “The Trump administration has made the forging of such deals a key priority given the importance of critical mineral resources to American security and prosperity. We look forward to seeing future agreements between US companies and their counterparts in the critical minerals and mining sector in Pakistan“.

Later, the Prime Minister’s House (PMO) stated in a statement that a high-level US delegation including USSM (United States Strategic Metals) and Mota-Engil, renowned global companies in the mining and infrastructure sector met with Prime Minister Shehbaz Sharif at the Prime Minister’s House. Deputy Prime Minister and Foreign Minister Ishaq Dar, Chief of the Army Staff (COAS) Field Marshal Syed Asim Munir and Federal Ministers were also present in the meeting.

The delegation is visiting Pakistan to explore opportunities for expansion of mining operations in Pakistan and assess potential for value addition in mineral resources and development of supporting infrastructure, according to the PMO.

It held high-level meetings with Prime Minister of Pakistan COAS, Minister of Petroleum and, Minister of Commerce and were briefed on Pakistan’s vast mineral reserves, including copper, gold, and rare earth elements.

“The visiting companies expressed readiness to invest in establishing value-addition facilities within the country, enhancing mineral processing capacity, and developing large-scale infrastructure projects linked to the mining sector,” the PMO said.

Two MoUs focusing in development and processing of critical minerals, including rare earth elements (REEs), and logistics services were signed between the two governments.

The Frontier Works Organization – Pakistan’s largest miner of critical minerals – signed the MoU with United States Strategic Metals (USSM), a leading processor, recycler, and miner based in St. Louis, Missouri.

“The agreement establishes a framework for collaboration across a range of critical minerals essential for the defense, aerospace, and technology industries.”

As per the details, the partnership will begin immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and rare earth elements.

“This cooperation lays the foundation for scaling up towards the establishment of a USSM proprietary, highly flexible poly-metallic refinery in Pakistan. The refinery will produce intermediate and finished products dedicated to meeting the rapidly growing demand of the US market. The first phase of this deal is envisaged at approximately $500 million of investments into Pakistan’s critical minerals sector.”

The collaboration further strengthens the enduring bilateral relationship between Pakistan and the United States, while unlocking new opportunities for sustainable growth, technology transfer, and job creation, it added.

“The next steps for the MoU include forming dedicated teams to explore the full potential of Pakistan’s vast resource base, identifying critical minerals for immediate export, and building an anchor position for a long-term partnership in exploration, extraction, and processing. Importantly, the cooperation will prioritize sustainability, profitability, and environmental responsibility to ensure benefits for the people of both nations.

“In addition, both parties will also explore innovative financing and digital solutions such as tokenisation of critical minerals, enabling global investors to participate in Pakistan’s mineral wealth and further accelerating transparency, liquidity, and value creation across the sector.”

Similarly, the National Logistics Corporation of Pakistan signed an MoU with Mota-Engil Group, a global leader in engineering and construction.

“The current survey of opportunities in Pakistan aims to identify priority markets where Mota-Engil can align with government visions and private sector initiatives. The Group seeks to build long-term partnerships that leverage its global know-how while creating value locally through job creation, technology transfer, and sustainable development,” the PMO said.

Last month, Secretary of State Marco Rubio said Washington looked forward to exploring cooperation with Pakistan on critical minerals and hydrocarbons, with his comments coming in a statement issued by the State Department on Pakistan’s Independence Day.

The development came after Washington and Islamabad had hailed a trade deal, which Pakistan said would result in lower tariffs and increased investment.

According to Pakistan’s Commerce Minister Jam Kamal, Islamabad will offer US businesses opportunities to invest in mining projects primarily in the southwestern Balochistan province through joint ventures with local companies, providing concessions such as lease grants.

The province is home to key mining projects, including Reko Diq, run by mining firm Barrick Gold and believed to be one of the world’s largest gold and copper mines.

In recent months, Washington’s ties with Islamabad have significantly improved. Trump took credit for a ceasefire between India and Pakistan after the Asian neighbors engaged in hostilities in May following an April attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK).