Pakistan, US Sign $500M MoU for Critical Minerals – 2025
Pakistan has taken a major step forward in its mining and mineral sectors—signing a landmark $500 million memorandum of understanding (MoU) with the United States aimed at enhancing cooperation in critical minerals exploration and processing.
Strategic Collaboration for Critical Minerals
On September 8, 2025, representatives from United States Strategic Metals (USSM) and Mota-Engil—a global name in mining and infrastructure—visited Islamabad. Led by the Frontier Works Organisation (FWO), Pakistan’s largest miner of strategic minerals, the delegation held high-level meetings spanning the Prime Minister’s Office, the Army Chief, and key federal ministers.
The resulting MoU with USSM establishes a collaboration framework focused on extracting, exporting, and ultimately adding value—potentially through a USSM-built poly-metallic refinery—across critical minerals such as antimony, copper, gold, tungsten, and rare earth elements (REEs).
Investment & Development Roadmap
The agreement marks the beginning of an important phase. Immediate steps include identifying minerals ready for export, assembling dedicated teams to analyze Pakistan’s resource base, and planning for exploration, processing, and infrastructure development.
USSM’s planned refinery in Pakistan will produce both intermediate and finished products to meet the surging demand of the U.S. market. This initiative is expected to generate jobs, facilitate technology transfer, promote sustainable mining, and help scale up Pakistan’s mineral economy.
Sustainable & Innovative Approach
A standout feature of the MoU is its emphasis on environmental responsibility, assured profitability, and sustainability—an approach that reflects modern best practices.
Innovative funding strategies will also be explored, including tokenization of critical minerals. This digital financing model is designed to attract global investors, improve liquidity, and enhance transparency in Pakistan’s resource market.
Broader Bilateral and Regional Impacts
US Chargé d’Affaires Natalie Baker called the signing a testament to deepening US-Pakistan bilateral ties, highlighting its mutual benefits
The initiative also aligns with broader U.S. strategic moves to diversify access to critical minerals and reduce reliance on traditional suppliers—especially in the context of shifting global supply chains.
Notably, bilateral ties have improved recently, with earlier deals including a US-Pakistan trade agreement and discussions on hydrocarbon development, offering a comprehensive economic growth strategy.
Economic Potential & Future Outlook
As Pakistan taps its largely untapped mineral wealth—especially in Balochistan—there’s increasing interest from global investors. High-value projects like Reko Diq, which holds vast copper-gold reserves, present opportunities for integrated development and refined output for export markets.
The $500 million investment, combined with scaling up mineral processing, exploring tokenization, and enabling export-ready supply chains, could redefine Pakistan’s mining sector, boosting GDP contribution and export revenues.
Final Thoughts
This MoU represents a critical turning point—embodying a shift from resource extraction to value-added, sustainable development. With billions of dollars in mineral wealth at play, it’s vital that Pakistan focuses on transparency, local capacity-building, and responsible environmental practices to ensure lasting benefits.
As these initiatives progress, the world will be watching how Pakistan transitions into a polished hub for critical minerals, modern mining infrastructure, and global economic integration.
