ISLAMABAD: A United States delegation, led by Missouri-based critical minerals firm US Strategic Metals (USSM), signed a memorandum of understanding (MoU) with the Frontier Works Organization (FWO) on Monday to enhance cooperation in mining and recycling of critical minerals.
The signing ceremony took place at the Prime Minister’s House and was attended by the US Embassy’s Acting Deputy Chief of Mission Zach Harkenrider, along with senior officials from USSM and FWO.
The MoU outlines collaboration avenues in exploration, development, and processing of minerals crucial for advanced manufacturing and clean energy production.
US to explore cooperation with Pakistan on critical minerals, hydrocarbons
In a statement, Chargé d’Affaires Natalie Baker of the US Embassy described the agreement as “yet another example of the strength of the US-Pakistan bilateral relationship,” highlighting its economic and strategic significance for both countries.
USSM, headquartered in Missouri, specialises in producing and recycling what the US Department of Energy classifies as “critical minerals” – materials vital to high-tech sectors such as electric vehicles, renewable energy infrastructure, and defence technologies.
Baker emphasised the importance of such partnerships, noting that the Trump administration “has made forging such deals a key priority given the importance of critical mineral resources to American security and prosperity.”
“We look forward to future agreements between US companies and their Pakistani counterparts in the critical minerals and mining sectors,” she added.
While the MoU signals growing US private sector interest in Pakistan’s largely untapped mineral wealth amid shifting global supply chains, further details regarding financial commitments or project timelines remain undisclosed.
The FWO, a military-run engineering and construction entity, has in recent years broadened its role in resource development and extractive industries.
This development unfolds amid intensifying global competition over critical minerals, as countries strive to secure supply chains for emerging technologies.
Separately, a statement from the Prime Minister’s Office said a high-level US delegation – including representatives from USSM and Mota-Engil, a renowned global mining and infrastructure firm – held a meeting with Prime Minister Shehbaz Sharif.
Deputy Prime Minister and Foreign Minister Ishaq Dar, Chief of Army Staff Field Marshal Syed AsimMunir, and federal ministers also attended.
The delegation is exploring opportunities to expand mining operations in Pakistan and assess potential for value addition in mineral resources alongside infrastructure development. During high-level meetings with the prime minister, COAS, Minister of Petroleum, and Minister of Commerce, the delegation was briefed on Pakistan’s vast mineral reserves, including copper, gold, and rare earth elements.
The visiting firms expressed readiness to invest in establishing value-addition facilities, boosting mineral processing capacity, and developing large-scale infrastructure linked to mining.
In this context, two MoUs were signed focusing on the development and processing of critical minerals – including rare earth elements (REEs) – and logistics services between the two governments.
The official statement from the Prime Minister’s Office, which described the FWO as “Pakistan’s largest miner of critical minerals,” said that the FWO and USSM signed a landmark MoU establishing a framework for collaboration on critical minerals vital to the defence, aerospace, and technology sectors.
The statement said the partnership will commence immediately with the export of readily available minerals from Pakistan such as antimony, copper, gold, tungsten, and rare earth elements.
It added that this cooperation lays the groundwork for a USSM proprietary, highly flexible poly-metallic refinery in Pakistan, which will produce intermediate and finished products to meet the rising demand of the US market.
“The first phase of this deal is projected to involve approximately USD500 million in investments into Pakistan’s critical minerals sector.”
This collaboration is expected to further strengthen the longstanding bilateral relationship between Pakistan and the United States while unlocking new opportunities for sustainable growth, technology transfer, and job creation.
Next steps include forming dedicated teams to explore Pakistan’s resource potential, identify critical minerals for immediate export, and establish a foundation for long-term cooperation in exploration, extraction, and processing.
Importantly, the cooperation will prioritise sustainability, profitability, and environmental responsibility to ensure mutual benefits.
Additionally, both parties will explore innovative financing and digital solutions such as tokenisation of critical minerals, allowing global investors to participate in Pakistan’s mineral wealth, thereby enhancing transparency, liquidity, and value creation.
Similarly, the National Logistics Corporation of Pakistan signed an MoU with Mota-Engil Group, a global leader in engineering and construction, which is actively pursuing new opportunities to expand across West Asia.
The ongoing survey of opportunities aims to identify priority markets where Mota-Engil can align with government visions and private sector initiatives, while fostering long-term partnerships that leverage global expertise and generate local value through job creation, technology transfer, and sustainable development.
The visit of the delegation and the signing of these MoUs mark a significant milestone in Pakistan’s efforts to attract global investment in the mining and logistics sectors, the statement concluded.
Copyright Business Recorder, 2025
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