US firm signs $500m MoU with Pakistan on critical minerals
The deal was signed at the Prime Minister’s House between USSM and Pakistan’s Frontier Works Organisation (FWO), the US Embassy in Islamabad said in a statement
Pakistan has signed a $500 million memorandum of understanding (MoU) with Missouri-based US Strategic Metals (USSM) to develop and process critical minerals, officials said on Monday, as Washington looks to secure supplies essential for advanced technologies.
The deal was signed at the Prime Minister's House between USSM and Pakistan's Frontier Works Organisation (FWO), the US Embassy in Islamabad said in a statement, reports Dawn.
"This signing is yet another example of the strength of the US-Pakistan bilateral relationship that will benefit both countries," US Chargé d'Affaires Natalie Baker said. She added that forging such agreements was a priority for Washington given the importance of critical minerals to American security and prosperity.
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USSM, which recycles lithium-ion batteries and mines cobalt, nickel and copper, is seeking to expand Pakistan's mining operations and build infrastructure to support value addition in minerals, the embassy said.
A statement from the Prime Minister's Office said the USSM delegation held talks with the prime minister, army chief and key ministers, and was briefed on Pakistan's reserves of copper, gold and rare earth elements (REEs), says Dawn.
The two sides signed separate MoUs covering the development of REEs and logistics services. Another agreement was reached between Pakistan's National Logistics Corporation and Portugal's Mota-Engil Group to cooperate on engineering, construction and mineral exports.
The partnership will initially involve exports of antimony, copper, gold, tungsten and REEs, with the first phase envisaging around $500 million in investments, officials said.
The deal comes as Islamabad and Washington move to strengthen economic ties. In July, the two countries agreed to reduce reciprocal tariffs, while earlier this year a senior US official highlighted America's strategic interest in Pakistan's mineral sector.
"Critical minerals are the raw materials necessary for our most advanced technologies," Eric Meyer of the US State Department's Bureau of South and Central Asian Affairs said during a visit to Islamabad in April.
