Critical Minerals in Pakistan: US Firms Eye Mining Sector as Trade Talks Gather Pace
American companies explore investment in copper and antimony projects while Islamabad and Washington accelerate bilateral trade negotiations.
Mining operations targeting critical minerals in Pakistan draw growing interest from US investors
US Firms Explore Mining Opportunities
American companies are expanding their investment focus on critical minerals in Pakistan, with a particular interest in developing smaller mines as well as major copper and antimony projects.
The move aligns with the US strategy to strengthen global supply chains for minerals essential to defence, semiconductors, and advanced manufacturing. At the same time, Pakistan and the US reported significant progress in negotiations for a bilateral trade agreement.
A US Embassy official confirmed that American firms are actively evaluating opportunities. He added that the US International Development Finance Corporation and the Export-Import Bank of the United States are supporting efforts to develop critical minerals in Pakistan.
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Reko Diq Project Moves Ahead
The US Export-Import Bank has committed $1.25 billion to the Reko Diq copper-gold project in Balochistan, although financing arrangements are still under discussion.
According to the US Embassy official, the project continues to move forward despite progressing more slowly than initially expected. International financial institutions, including the International Finance Corporation, are also engaged in financing discussions.
Trade Negotiations Advance
Finance Minister Muhammad Aurangzeb and US Trade Representative Jamieson Greer reviewed progress on a proposed bilateral trade agreement during a virtual meeting.
Both sides said negotiations on a reciprocal trade framework had advanced significantly and reaffirmed their commitment to concluding the agreement as soon as possible.
Strategic Value of Critical Minerals in Pakistan
US officials highlighted the strategic value of critical minerals in Pakistan, including reserves of antimony and copper, which are critical for aircraft manufacturing, defence equipment, and clean energy technologies.
The embassy encouraged Pakistan to provide a level playing field for American investors, improve geological surveys, and reduce regulatory hurdles to attract greater foreign investment.
Officials also noted that Pakistan’s mining sector currently contributes around 3% to GDP, while the Reko Diq project alone could add another 0.5% to the economy.
Security and Investment Outlook
Despite security concerns in parts of Balochistan and other mineral-rich regions, US officials said companies remain interested because of the country’s significant untapped potential.
They added that investment opportunities extend beyond the United States, with mining firms from Australia, Canada, and other countries also exploring the sector.
