Pakistan bags $500 million deal with US firm as it looks to unlock 'trillion-dollar treasure'

A US-based metals company has signed a $500 million investment deal with Pakistan aimed at boosting the country’s critical minerals sector, in what officials described as a milestone for bilateral economic ties.

Missouri-headquartered US Strategic Metals (USSM) signed a memorandum of understanding on Monday with Pakistan’s Frontier Works Organization (FWO) — the country’s largest miner of critical minerals — to establish a poly-metallic refinery and launch joint mining projects.

The agreement comes weeks after Washington and Islamabad reached a trade pact last month, which Pakistan hoped would pave the way for American investment in its mineral and energy reserves.

USSM specialises in producing and recycling minerals considered essential for advanced manufacturing and clean energy technologies, as defined by the US Department of Energy.

Pakistan had claimed earlier this year that it possesses mineral reserves worth trillions of dollars, saying that foreign investment in the mineral sector could help the country overcome its prolonged financial crisis and free itself from the burden of foreign debt.

Pakistan army chief Asim Munir had earlier described the reserves as "a rare earth treasure", saying that it will help reduce Pakistan's debt and turn it into a "prosperous society.”

According to a statement from the office of Prime Minister Shehbaz Sharif, the new partnership will begin “immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and rare earth elements.”

Sharif also met with delegations from USSM and Mota-Engil Group, a Portuguese engineering and construction firm that signed a separate agreement with Pakistan’s National Logistics Corp. Discussions focused on developing value-added facilities, expanding mineral processing capacity, and undertaking large-scale projects tied to copper, gold, rare earths and other resources.

US embassy welcomes move

The US Embassy in Islamabad hailed the development in a statement, saying: “This signing is yet another example of the strength of the U.S.-Pakistan bilateral relationship that will benefit both countries.”

On social media, the embassy added: “Excited to see U.S. companies like USSM deepening economic ties with Pakistan! USSM’s visit to Islamabad marks an important milestone as they sign an MOU to collaborate on critical minerals production. A forward-looking partnership with great potential for both nations.”

Acting Deputy Chief of Mission Zach Harkenrider accompanied the USSM delegation to the Prime Minister’s House for the signing, according to a report in Dawn citing an embassy press release.

US Chargé d’Affaires Natalie Baker underscored the strategic importance of the agreement, saying: “This signing is yet another example of the strength of the US-Pakistan bilateral relationship that will benefit both countries.” She added that the administration of President Donald Trump had prioritised such deals “based on the importance of critical mineral resources to American security and prosperity.”

Most of Pakistan’s mineral wealth lies in the restive Balochistan province, which is plagued by separatist insurgency.

The US State Department last month designated the Balochistan National Army and its militant wing, the Majeed Brigade, as a foreign terrorist organization. Additional reserves have also been identified in Sindh, Punjab and Khyber Pakhtunkhwa.

Several foreign firms are already present in the sector. Canadian mining giant Barrick Gold owns a 50% stake in the massive Reko Diq gold mine in Balochistan.

With Monday’s agreement, US officials said they expect more American companies to explore opportunities in Pakistan’s mineral and mining industry.