Tariff deal, Washington Islamabad ink MoU on critical minerals: initial investment of $500 million envisages

ISLAMABAD: Embassy Islamabad Acting Deputy Chief of Mission Zach Harkenrider accompanied a delegation led by U.S. Strategic Metals (USSM) on Monday signed Memorandum of Understanding (MoU) with Pakistan’s Frontier Works Organization (FWO) at Prime Minister House today. Speaking about the MOU signing, Chargé d’Affaires (CDA) Natalie Baker said, “This signing is yet another example of the strength of the U.S.-Pakistan bilateral relationship that will benefit both countries.”
According to the US Embassy, USSM, based in the U.S. state of Missouri, is focused on producing and recycling critical minerals, which the U.S. Department of Energy has defined as essential in a variety of technologies related to advanced manufacturing and energy production. Speaking about the importance of such bilateral agreements, CDA Baker added, “The Trump administration has made the forging of such deals a key priority given the importance of critical mineral resources to American security and prosperity. We look forward to seeing future agreements between U.S. companies and their counterparts in the critical minerals and mining sector in Pakistan.”
Meanwhile a press release issued by the Prime Minister Office says that 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 Prime Minister Muhammad Shehbaz Sharif at the Prime Minister’s House today. 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 expansion of mining operations in Pakistan and assess potential for value addition in mineral resources and development of supporting infrastructure.
Delegation held high-level meetings with 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.
The visiting companies expressed readiness to invest in establishing value-addition 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 in development and processing of critical minerals, including rare earth elements (REEs), and logistics services were signed between the two governments.
The Frontier Works Organization (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 defense, aerospace, and technology industries.
The partnership will begin immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and rare earth elements. 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 U.S. 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 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.