An American mining company has signed a $500 million investment agreement with Pakistan, marking a significant step in boosting the country’s mineral and resource sector.
The Frontier Works Organization, Pakistan’s largest rare earth mining company, confirmed the signing of a memorandum of understanding with US Strategic Metals, a Missouri-based firm.
The deal covers plans to establish a polymetallic ore processing plant in Pakistan. Polymetallic ore contains essential minerals such as lead and zinc.
This agreement follows a trade pact reached last month between Washington and Islamabad, aimed at attracting US investment into Pakistan’s vast reserves of minerals and oil.
US Strategic Metals specializes in the production and recycling of critical minerals defined by the US Department of Energy as essential for advanced technology industries.
A second agreement was also signed between Pakistan’s National Logistics Cell and Portuguese engineering and construction firm Mota-Engil Group.
According to a statement from Prime Minister Shehbaz Sharif’s office, he held talks with representatives from the American mining firm and Mota-Engil on Pakistan’s copper, gold, rare earth elements, and other mineral resources. Both sides expressed readiness to establish value-added facilities, expand mineral processing capacity, and implement large-scale mining projects.
The statement added that the partnership will begin immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and rare earth elements.
Earlier this year, Prime Minister Sharif highlighted that Pakistan’s mineral reserves are valued in the trillions of dollars. He emphasized that foreign investment in mining could help the nation overcome its financial crisis and reduce reliance on heavy foreign debt.
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