Pakistan Secures $500M US Investment in Mining and Logistics

ISLAMABAD, Ali Imran Chattha 

 Pakistan has taken a major step toward attracting foreign investment in its mining and logistics sectors, with a high-level US delegation from United States Strategic Metals (USSM) and Mota-Engil visiting Islamabad and signing two key memoranda of understanding (MoUs).

The delegation met with Prime Minister Muhammad Shehbaz Sharif, along with Deputy Prime Minister Ishaq Dar, Chief of the Army Staff Field Marshal Syed Asim Munir, and other federal ministers. The visit's purpose was to explore opportunities for expanding mining operations, adding value to mineral resources, and developing supporting infrastructure in Pakistan.

Key Agreements Signed

Two major MoUs were signed during the visit, focusing on critical minerals and logistics.

• Frontier Works Organization (FWO) and USSM: The FWO, Pakistan’s largest critical minerals miner, signed an MoU with USSM, a leading US-based processor, recycler, and miner. This agreement creates a framework for cooperation on critical minerals essential for the defense, aerospace, and technology industries, including antimony, copper, gold, tungsten, and rare earth elements. The partnership's first phase involves an initial investment of approximately $500 million and will begin with the immediate export of readily available minerals from Pakistan. The long-term goal is to establish a polymetallic refinery in Pakistan to produce products for the growing US market. Both parties will also explore innovative financing solutions like the tokenization of critical minerals to attract global investors and increase transparency.

• National Logistics Corporation (NLC) and Mota-Engil: The NLC signed a separate MoU with the Mota-Engil Group, a global leader in engineering and construction. This agreement aims to identify markets in Pakistan where the company can align with government initiatives and leverage its global expertise to create value through job creation, technology transfer, and sustainable development.

A Milestone for Bilateral Relations

The Prime Minister's Office press release highlighted that the visit and the signing of the MoUs represent a milestone in Pakistan's efforts to attract global investment. The collaboration is expected to strengthen the bilateral relationship between Pakistan and the United States, while also creating new opportunities for sustainable growth, job creation, and technology transfer. The cooperation will also prioritize environmental responsibility to ensure benefits for the people of both nations.

The agreements mark a strategic move for Pakistan to tap into its vast, and largely unexplored, mineral wealth.