US company inks $500mn investment MoU with Pakistan in minerals sector

ISLAMABAD: United States Strategic Metals (USSM), a leading American company in critical minerals, has signed a Memorandum of Understanding (MoU) with Pakistan, committing an initial investment of $500 million into the country’s mining sector.

A high-level U.S. delegation, including representatives from USSM and global infrastructure giant Mota-Engil, met Prime Minister Muhammad Shehbaz Sharif in Islamabad to explore investment opportunities in Pakistan’s vast mineral resources. The meeting was also attended by Deputy Prime Minister Ishaq Dar, Chief of Army Staff Field Marshal Syed Asim Munir, and several federal ministers.

The delegation’s visit focused on assessing prospects for mineral extraction, value addition, and infrastructure development. Pakistan’s rich reserves of copper, gold, rare earth elements (REEs), and other critical minerals were presented during briefings with top officials, including the Ministers of Petroleum and Commerce.

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.

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

In a landmark development, Pakistan’s Frontier Works Organization (FWO), the country’s largest miner of critical minerals, signed an MoU with USSM.

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

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

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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 U.S. market. The first phase of this deal is envisaged at approximately $500 million of investments into Pakistan’s critical minerals sector.

Next steps include the formation of dedicated teams to identify critical minerals for immediate export and lay the groundwork for long-term collaboration in exploration, processing, and infrastructure.

The parties also agreed to explore innovative financial tools, including the tokenization of critical minerals, to attract global investment and increase transparency and liquidity in the sector.

Separately, Pakistan’s National Logistics Corporation (NLC) signed an MoU with Mota-Engil Group to collaborate on logistics and infrastructure development. Mota-Engil, known for its global footprint in construction and engineering, is seeking to align its initiatives with Pakistan’s strategic goals and private sector growth.