Washington expects to unveil new mining partnerships and investment initiatives as US firms explore opportunities in Pakistan’s critical minerals sector.
ISLAMABAD: The United States expects to announce new partnerships with Pakistan in the critical minerals sector later this year, as Washington seeks to diversify global supply chains and encourage greater American investment in Pakistan’s mining industry.
According to Pakistan Television (PTV), the announcement was made during a background briefing by a US Embassy official with journalists. The session marked the first in a year-long series of economic outreach engagements aimed at strengthening dialogue on trade, investment, innovation and broader economic cooperation between Pakistan and the United States.
US Firms Explore Investment Opportunities
The embassy official said several American companies are actively evaluating investment opportunities across Pakistan’s mining sector through a variety of commercial models.
These include the acquisition of smaller mines, mineral offtake agreements and large-scale investments in copper and other strategic mineral deposits.
The United States also expects to launch government-to-government initiatives this autumn focusing on mining cooperation, workforce development and support for new mining projects.
Critical Minerals a Strategic Priority
The official said the US administration has made securing access to critical minerals a strategic priority due to their importance in semiconductor manufacturing, artificial intelligence, defence technologies and modern energy infrastructure.
“The administration has very much put a focus on forging these deals in the mining sector,” the official said, adding that critical minerals are increasingly vital to America’s economic security, industrial competitiveness and national defence.
Pakistan’s Untapped Mining Potential
The embassy noted that Pakistan’s mining sector currently contributes around 3% of GDP, but possesses significant potential to become a major driver of long-term economic growth.
According to the official, Pakistan has intensified efforts to attract foreign investment through initiatives such as the Pakistan Minerals Investment Forum and participation in international mining conferences held in Australia, Saudi Arabia and Canada.
“The government is doing everything it can to facilitate projects, investment and opportunities for US companies and other foreign investors,” the official added.
Interest Extends Beyond Balochistan
While Balochistan remains the primary destination for large-scale mining investment, American companies are also assessing opportunities in Khyber Pakhtunkhwa, Waziristan and the Gilgit region.
The official said investors have shown particular interest in deposits of:
• Copper
• Antimony
• Tungsten
Discussions with US companies involve multiple investment approaches rather than a single model. Some firms are negotiating long-term offtake agreements to purchase minerals from existing Pakistani mines for processing in the United States or allied markets, including Europe and South Korea.
Others are evaluating acquisitions of smaller mining operations that could be expanded rapidly, while major mining companies are studying multi-billion-dollar investments in large copper projects.
The embassy encouraged American investors to partner with experienced Pakistani companies to better understand local operating conditions and security requirements.
Reko Diq Project Remains on Track
The embassy reaffirmed US support for the Reko Diq copper-and-gold project, where the Export-Import Bank of the United States is considering approximately $1.25 billion in financing.
Responding to questions regarding reported delays, the official said the project remains on track, although timelines may evolve as engineering studies progress and financing arrangements are finalised.
According to projections cited during the briefing, Reko Diq could contribute around 0.5 percentage points to Pakistan’s GDP once operational while generating substantial export earnings and foreign exchange inflows.
The project is expected to produce approximately $2 billion annually in free cash flow, with nearly $500 million each year accruing to state-owned enterprises and a similar amount benefiting Balochistan for development initiatives.
Officials also expect the project to generate significant employment opportunities and stimulate demand for transport, engineering, equipment supply and related industries.
Diversifying Global Supply Chains
The embassy described its engagement with Pakistan as part of a broader strategy to diversify global critical mineral supply chains rather than as a geopolitical initiative.
Responding to questions about China’s role in Pakistan’s mining sector, the official said Pakistan is attracting investment from multiple countries and there is ample scope for American, Chinese and other international companies to participate simultaneously.
Greater international investment, the official added, would strengthen Pakistan’s mining ecosystem by improving geological surveys, technical expertise, workforce skills and overall sector development.
Security and Investment Climate
The embassy acknowledged that several mineral-rich regions, particularly in Balochistan and Khyber Pakhtunkhwa, continue to face security challenges.
The official said American companies are aware of these risks and generally work with experienced local partners while implementing comprehensive security arrangements for their operations.
The United States also encouraged Pakistan to maintain a transparent investment framework and provide adequate security for mining projects. The embassy further advised Pakistani licence holders to complete internationally recognised geological surveys and feasibility studies before seeking foreign investment, enabling prospective investors to make well-informed commercial decisions.