KEY POINTS
- US Strategic Metals signed MOU with Pakistan’s Frontier Works Organisation.
- US Embassy hailed the deal as strengthening bilateral ties.
- Agreement seen as part of a wider push for cooperation in mining.
ISLAMABAD: Pakistan and the United States on Monday signed a Memorandum of Understanding (MoU) to advance cooperation on critical mineral exploration in the South Asian country, marking a significant step in strengthening bilateral economic engagement.
A high-level US delegation, including USSM (United States Strategic Metals) and Mota-Engil, renowned global companies in the mining and infrastructure sector met with Pakistan’s Prime Minister Shehbaz Sharif, the PM Office’s media wing stated in a press release. Deputy Prime Minister and Foreign Minister Ishaq Dar, Chief of the Army Staff Field Marshal Syed Asim Munir and Federal Ministers were also present in the meeting.
The delegation is visiting Pakistan to explore opportunities for the expansion of mining operations in Pakistan and assess the potential for value addition in mineral resources and the development of supporting infrastructure.
Delegation held high-level meetings with the Prime Minister of Pakistan, Chief of Army Staff (COAS), Minister of Petroleum, and Minister of Commerce, and were briefed on Pakistan’s vast mineral reserves, including copper, gold, and rare earth elements, according to the PM Office.
The visiting companies expressed readiness to invest in establishing value-added 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 on the development and processing of critical minerals, including rare earth elements (REEs), and logistics services were signed between the two governments.
The Frontier Works Organisation (FWO) – Pakistan’s largest miner of critical minerals – signed a landmark Memorandum of Understanding (MoU) with United States Strategic Metals (USSM), a leading processor, recycler, and miner based in St. Louis, Missouri. The agreement establishes a framework for collaboration across a range of critical minerals essential for the defence, aerospace, and technology industries.
The US Embassy also confirmed the MoU.
The US Embassy in Islamabad shared details of the development through a press release and also in an official post on X.
Excited to see U.S. companies like USSM deepening economic ties with Pakistan! USSM’s visit to Islamabad marks an important milestone as they sign an MOU to collaborate on critical minerals production. A forward-looking partnership with great potential for both nations. -NB…
— U.S. Embassy Islamabad (@usembislamabad) September 8, 2025
Acting Deputy Chief of Mission Zach Harkenrider accompanied the US business delegation. At the same time, Chargé d’Affaires Natalie Baker described the agreement as “yet another example of the strength of the US-Pakistan bilateral relationship that will benefit both countries.”
USSM’s focus aligns with the US Department of Energy’s definitions of critical minerals as essential inputs in advanced manufacturing and energy technologies.
Baker noted that the Trump administration had made such deals a priority, given the strategic importance of mineral resources to American security and prosperity.
The signing comes against the backdrop of a broader realignment in Pakistan–US trade and investment ties.
The partnership will begin immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and rare earth elements, PM Office stated.
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 US market. The first phase of this deal is envisaged at approximately $500 million of investments into Pakistan’s critical minerals sector.
This collaboration further strengthens the enduring bilateral relationship between Pakistan and the United States, while unlocking new opportunities for sustainable growth, technology transfer, and job creation.
The next steps for the MoU include forming dedicated teams to explore the full potential of Pakistan’s vast resource base, identifying critical minerals for immediate export, and building an anchor position for a long-term partnership in exploration, extraction, and processing.
Importantly, the cooperation will prioritize sustainability, profitability, and environmental responsibility to ensure benefits for the people of both nations.
In addition, both parties will also explore innovative financing and digital solutions such as tokenisation of critical minerals, enabling global investors to participate in Pakistan’s mineral wealth and further accelerating transparency, liquidity, and value creation across the sector.
Similarly, the National Logistics Corporation of Pakistan signed an MoU with Mota-Engil Group, which is a global leader in engineering and construction is actively working on new opportunities to expand its footprint across West Asia.
The current survey of opportunities in Pakistan aims to identify priority markets where Mota-Engil can align with government visions and private sector initiatives. The Group seeks to build long-term partnerships that leverage its global know-how while creating value locally through job creation, technology transfer, and sustainable development.
The visit of the delegation and signing of the aforementioned MoUs mark a milestone in Pakistan’s efforts to attract global investment in the mining & logistics sectors.
In recent months, tariff negotiators from both countries concluded discussions in Washington, which were welcomed by President Donald Trump and resulted in a reduction of US tariffs on Pakistani goods from 29 to 19 percent.
Officials believe this easing of trade barriers created the basis for closer cooperation in sectors such as mining and critical minerals, complementing Pakistan’s efforts to attract foreign investment into its natural resources sector.
She added, “We look forward to seeing future agreements between U.S. companies and their counterparts in the critical minerals and mining sector in Pakistan.”
