ISLAMABAD(National times)- Pakistan on Monday signed a Memorandum of Understanding (MoU) with US Strategic Metals (USSM), an American company specialising in critical minerals, for an initial investment of $500 million in the country’s mineral sector. The agreement was signed with the Frontier Works Organisation (FWO) at a ceremony held at the Prime Minister House. Prime Minister Shehbaz Sharif and senior officials were present, while Chief of Army Staff (COAS) Field Marshal Asim Munir also attended the signing, highlighting the importance Islamabad attaches to the partnership. The US Embassy said the agreement would help accelerate Pakistan’s mineral exploration and development drive. The visiting USSM delegation was accompanied by the Embassy’s Acting Deputy Chief of Mission Zach Harkenrider. The company, headquartered in Missouri, works on producing and recycling critical minerals that the US Department of Energy has identified as vital for advanced manufacturing, clean energy, and defence technologies.
Focus on critical minerals
According to USSM’s profile, the firm extracts critical metals from old lithium-ion batteries and is engaged in mining cobalt, nickel and copper. The PM House statement said discussions also centred on Pakistan’s reserves of copper, gold, antimony, tungsten, and rare earth elements (REEs). Two MoUs were signed at the ceremony – one focusing on the development and processing of critical minerals, including REEs, and another on logistics services to support mining operations. The agreement envisages beginning immediately with the export of readily available minerals from Pakistan. US Chargé d’Affaires Natalie Baker described the signing as a step forward in strengthening bilateral ties, noting, “This is yet another example of the strength of the US-Pakistan bilateral relationship that will benefit both countries.”
Expanding cooperation
The PM House added that the USSM delegation held high-level meetings with the prime minister, the army chief, the minister of petroleum and the minister of commerce. Officials briefed the delegation on Pakistan’s vast mineral potential and the scope for value addition and infrastructure development in the mining sector. The US Embassy expressed optimism about further agreements in the sector, while Washington has signalled its strategic interest in Pakistan’s mineral wealth. Earlier this year, senior State Department official Eric Meyer underlined the importance of critical minerals as “raw materials necessary for our most advanced technologies.” Pakistan’s ties with the United States have recently seen improvement. In July, Islamabad negotiated a reduction in reciprocal tariffs from 29 percent to 19 percent, and the two sides concluded new trade arrangements. The latest MoU marks a significant step in strengthening economic cooperation, with the first phase alone bringing half a billion dollars of US investment into Pakistan’s mineral industry.
