The United States has strengthened its ties with Pakistan as Missouri-based US Strategic Metals signed a $500 million investment deal to boost foreign investment in the country’s mineral sector.Pakistan’s Frontier Works Organization, the largest miner of critical minerals, formalised the agreement on Monday through a memorandum of understanding with the American firm, paving the way for the establishment of a poly-metallic refinery in Pakistan.The agreement follows a trade pact signed between Washington and Islamabad last month, which Pakistan hoped would encourage US investment in its vast mineral and oil reserves, as per AP.US Strategic Metals specialises in producing and recycling critical minerals, which the US department of energy defines as crucial for advanced manufacturing and energy technologies.Another agreement was signed between Pakistan’s National Logistics Corp and Portuguese engineering and construction giant Mota-Engil Group.According to a statement from Pakistan’s PM Shehbaz Sharif’s office, he held talks with delegations from US Strategic Metals and Mota-Engil over Pakistan’s copper, gold, rare earths and other mineral resources.The statement said both sides agreed to work on setting up value-added facilities, boosting mineral processing capacity, and taking up large-scale mining projects. “The partnership will begin immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and rare earth elements,” it added, as cited by AP.The US embassy in Islamabad welcomed the development, saying in a statement, “This signing is yet another example of the strength of the US-Pakistan bilateral relationship that will benefit both countries.”Earlier this year, Sharif said Pakistan holds mineral reserves worth trillions of dollars, and that foreign investment could help the country overcome its prolonged financial crisis and reduce its dependence on massive foreign loans.Much of Pakistan’s mineral wealth lies in the insurgency-hit southwestern Balochistan province, where separatist groups have opposed resource extraction by local and foreign firms. Earlier in August, the US state department designated the Balochistan National Army and its armed wing, the Majeed Brigade, as a foreign terrorist organisation.Deposits of oil and minerals have also been identified in Sindh, Punjab and Khyber Pakhtunkhwa, bordering Afghanistan, AP reported.The US Strategic Metals firm now joins the series of many international companies that have already entered Pakistan’s mining sector. Among them is Canadian firm Barrick Gold, which owns a 50% stake in the Reko Diq gold mine in Balochistan.
