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Home MoU

Pakistan and US Sign MoU on Critical Minerals Exploration

TechX Editor by TechX Editor
September 8, 2025
in MoU
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Pakistan and US Sign MoU on Critical Minerals Exploration

A high-level United States delegation, including representatives from US Strategic Metals (USSM) and Mota-Engil, visited Pakistan from September 7 to 9, 2025. The purpose of this important visit was to explore opportunities for expanding mining operations. The delegation also evaluated the potential for value addition in Pakistan’s mineral resources and the possibility of developing supporting infrastructure for long-term cooperation.

Table of Contents

Toggle
  • High-Level Meetings with Leaders
  • Signing of the Landmark MoU
  • FWO and USSM Partnership
  • Export and Refinery Development
  • Next Steps for the Agreement
  • Innovative Financing Solutions
  • US Perspective on the Deal
  • Baker’s Optimism for Future Partnerships
  • NLC and Mota-Engil Agreement
  • Path Toward Sustainable Development

High-Level Meetings with Leaders

During their three-day visit, the American delegation held high-level meetings with key Pakistani leadership, including the Prime Minister, the Chief of Army Staff, the Minister of Petroleum, and the Minister of Commerce. These discussions focused on Pakistan’s mineral potential, covering rich reserves of copper, gold, and rare earth elements. The talks laid the groundwork for signing a crucial Memorandum of Understanding (MoU).

Signing of the Landmark MoU

The highlight of the visit was the signing of an MoU between Pakistan and the United States. Senior officials, including the US Acting Deputy Chief of Mission, Zach Harkenrider, attended the event. The agreement focuses on cooperation in the exploration and production of critical minerals, setting the stage for a strategic partnership between the two nations in one of the world’s most essential industrial sectors.

FWO and USSM Partnership

One of the most significant outcomes was the agreement between the Frontier Works Organization (FWO), Pakistan’s largest miner of critical minerals, and United States Strategic Metals (USSM), a leading processor, recycler, and miner from Missouri. This MoU establishes a framework for collaboration across various critical minerals crucial for defense, aerospace, and advanced technology industries, ensuring strong economic and industrial gains for both nations.

Also Read: Pakistan and China Sign Key IT & Emerging Tech MoUs at B2B Conference

Export and Refinery Development

The partnership will begin with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and rare earth elements. Importantly, the plan includes establishing a poly-metallic refinery in Pakistan under USSM’s proprietary system. This refinery will focus on producing intermediate and finished products for the U.S. market. The first phase involves an estimated $500 million investment in Pakistan’s mineral sector.

Next Steps for the Agreement

The next stage of the MoU involves forming specialized teams to identify priority minerals for immediate export while evaluating long-term opportunities. The cooperation emphasizes exploration, extraction, and processing of resources, with a focus on sustainability and environmental responsibility. This strategy ensures both profitability and benefits for communities in Pakistan while strengthening supply chains in the United States’ growing minerals market.

Innovative Financing Solutions

Beyond mining and processing, both parties plan to explore innovative financing tools to expand the sector. One key focus is the tokenisation of critical minerals, which will allow global investors to participate in Pakistan’s mineral wealth. This digital approach is expected to improve transparency, liquidity, and value creation while attracting international capital and increasing confidence in Pakistan’s rapidly developing mining industry.

US Perspective on the Deal

Speaking on the occasion, US Chargé d’Affaires Natalie Baker emphasized the strategic importance of the agreement. She described it as a testament to the strengthening relationship between the United States and Pakistan. Baker highlighted that the Trump administration had prioritized such partnerships, recognizing critical minerals as vital resources for global security and technological development. She expressed hope for further U.S. investment in Pakistan’s mining sector.

Baker’s Optimism for Future Partnerships

Natalie Baker expressed optimism about this collaboration, calling it a far-reaching partnership with immense potential for both nations. She stressed that the MoU will not only strengthen economic ties but also pave the way for long-term cooperation in critical mineral production. According to Baker, agreements like this will boost bilateral trust, encourage more U.S. companies to invest, and enhance Pakistan’s global economic standing.

NLC and Mota-Engil Agreement

Alongside the USSM-FWO agreement, the National Logistics Corporation (NLC) of Pakistan signed an MoU with Mota-Engil, a global engineering and construction leader. The Group aims to expand its footprint in West Asia, including Pakistan. This cooperation will focus on building infrastructure, supporting mining projects, and aligning with Pakistan’s development goals while creating value locally through job creation, technology transfer, and sustainable development.

Path Toward Sustainable Development

The recent agreements mark a historic milestone in Pakistan’s mineral and infrastructure development. With USSM and Mota-Engil committing significant expertise and investment, Pakistan has a chance to unlock the true potential of its mineral wealth. Prioritizing sustainability, innovation, and global collaboration, the partnership with the United States could transform Pakistan’s mining sector into a powerful engine for long-term economic growth and strategic progress.

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