## **US Companies Explore Investment Opportunities in Pakistan’s Critical Minerals Sector**
**ISLAMABAD:** American companies are actively exploring investment opportunities in Pakistan’s critical minerals sector as the United States intensifies efforts to secure resilient global supply chains for strategic minerals essential to advanced manufacturing, defence, and clean energy technologies.
According to a senior **US Embassy** official, several American firms are assessing opportunities to acquire and develop smaller mineral deposits in Pakistan, while also considering larger investments in projects involving **copper, antimony**, and other critical minerals.
The official said the initiative aligns with the US administration’s strategy to diversify global mineral supply chains through institutions such as the **US International Development Finance Corporation (DFC)** and the **Export-Import Bank of the United States (US EXIM Bank)**.
### **US EXIM Supports Reko Diq**
The official confirmed that the **US EXIM Bank** has committed **US$1.25 billion** in financing for the **Reko Diq Copper-Gold Project** in Balochistan, although the financial arrangements are still being finalized.
While acknowledging that the project is progressing more slowly than originally planned, the official emphasized that development continues, with international financial institutions, including the **International Finance Corporation (IFC)**, engaged in financing discussions.
“Projects of this scale naturally evolve over time, and adjustments to timelines are expected,” the official noted.
### **Pakistan-US Trade Talks Advance**
The briefing coincided with ongoing negotiations between Pakistan and the United States on a bilateral trade framework.
During a virtual meeting, **Finance Minister Muhammad Aurangzeb** and **US Trade Representative Jamieson Greer** reviewed progress on the proposed reciprocal trade agreement. Both sides expressed satisfaction with the pace of negotiations and reaffirmed their commitment to concluding the agreement at the earliest opportunity.
### **Growing Interest in Pakistan’s Mineral Potential**
US officials highlighted Pakistan’s significant untapped reserves of critical minerals, including substantial **antimony** deposits, alongside copper and several other minerals vital for the production of semiconductors, aerospace components, defence equipment, batteries, and other high-tech industries.
American companies are also exploring commercial arrangements to purchase mineral output from smaller Pakistani mines for processing in the United States, while some materials could be integrated into supply chains serving **Germany, South Korea**, and other industrial markets.
The official noted that Pakistan’s mining sector currently contributes approximately **3 percent** to the country’s GDP, while the **Reko Diq** project alone has the potential to increase GDP by an additional **0.5 percent** once operational.
### **Institutional Reforms Needed**
While appreciating the Pakistani government’s efforts to facilitate foreign investment, the US official stressed that improving the investment climate would require reducing bureaucratic hurdles and strengthening institutions such as the **Geological Survey of Pakistan** to accelerate exploration and feasibility studies.
Several American companies are already in discussions with Pakistani authorities and private sector partners regarding potential mining ventures. However, the official declined to identify specific firms, stating that announcements would be made once agreements are finalized.
### **Expanding Trade and Investment**
The official also revealed that **US Strategic Metals** has already imported a shipment of Pakistani minerals supplied by the **Frontier Works Organisation (FWO)** for processing in the United States, with both countries exploring additional trade and investment opportunities in the sector.
Addressing questions regarding competition between the United States and China, the official emphasized that Pakistan’s mineral sector presents opportunities for investors from around the world, including the US, China, Australia, and Canada.
He added that international participation would not only attract investment but also support technology transfer, workforce development, and sustainable growth of Pakistan’s mining industry.
### **Security Challenges and Long-Term Potential**
Despite acknowledging security concerns in parts of **Balochistan**, the official said the country’s rich mineral resources continue to attract international interest due to their long-term commercial value.
He pointed to promising mineral prospects in **Chitral**, **Waziristan**, **Gilgit-Baltistan**, and **Balochistan**, where exploration has identified commercially viable deposits of antimony, copper, and other strategic minerals.
The United States has increasingly prioritised the development of secure and transparent critical mineral supply chains as part of its broader industrial and national security strategy, seeking to diversify sources amid growing global demand and concerns over concentrated supply networks.
Story by Khaleeq Kiani
