‘FORGE’ launched: US approves USD1.3bn financing for Reko Diq project

KARACHI: The United States has approved USD1.3 billion in financing for Pakistan’s Reko Diq copper and gold project as part of its expanding support for global critical mineral supply chains, announced during the 2026 Critical Minerals Ministerial hosted in Washington on February 4.

The financing, approved through the Export-Import Bank of the United States (EXIM), was highlighted as the United States signed eleven new bilateral critical minerals frameworks and memorandums of understanding with partner countries and completed negotiations with seventeen others.

Secretary of State Marco Rubio also announced the launch of the Forum on Resource Geostrategic Engagement (FORGE), which will succeed the Minerals Security Partnership and will be chaired by the Republic of Korea through June.

READ MORE: US EXIM approves $1.25bn financing for Pakistan’s Reko Diq

“The United States is demonstrating unprecedented leadership in critical minerals diplomacy,” the State Department said, noting that the newly signed frameworks lay the groundwork for collaboration on pricing challenges, supply chain gaps, and expanded access to financing.

“The US government is mobilizing unprecedented resources to secure critical mineral supply chains, supporting projects with more than $30 billion in letters of interest, investments, loans, and other forms of support over the past six months, in partnership with the private sector,” the US State Department said.

The ministerial brought together representatives from 54 countries and the European Commission, including 43 foreign and other ministers, to discuss securing and diversifying global supply chains for critical minerals and rare earths. Delegations included Pakistan, Saudi Arabia, the United Arab Emirates, the United Kingdom, the European Union, and countries from Africa, Asia, and the Americas.

According to the U.S. Department of State, critical minerals and rare earths are essential for advanced technologies, including artificial intelligence, robotics, batteries, and autonomous devices. The US officials said the current market remains highly concentrated, creating risks of supply chain disruption and political coercion.

During the ministerial, the US announced government financing opportunities and emphasized cooperation with partners to build secure, diversified, and resilient critical mineral supply chains. The US officials also highlighted collaboration with the private sector through initiatives such as Pax Silica, covering mining, processing, recycling, and end-use applications. A task force of mining industry leaders was convened following the ministerial to advance priority projects.

The State Department said the US government has mobilized more than USD30 billion in letters of interest, investments, loans, and other support for critical mineral supply chains over the past six months, working in partnership with the private sector. Additional projects are undergoing due diligence and are expected to be announced in the coming period.

Copyright Business Recorder, 2026