Companies from Pakistan and the United States on Monday signed two Memorandums of Understanding (MoUs) to develop and process critical minerals and rare earth elements (REEs), alongside agreements in the logistics and infrastructure sector.
According to the Prime Minister’s Office, the first MoU signed between the Frontier Works Organisation (FWO) and United States Strategic Metals (USSM), focusing on exploration, extraction, and processing of minerals including cobalt, lithium, nickel, copper, gold, tungsten, and antimony. The second MoU signed between the National Logistics Corporation (NLC) and Mota-Engil Group, a Portuguese engineering and construction company, for cooperation in logistics services and infrastructure development.
US Investment in Critical Minerals and Rare Earth Processing
The contract with USSM covers more than mining of minerals. It entails setting up of a poly-metallic refinery in Pakistan to purify rare earths and critical minerals. USSM has promised to invest at least $500 million in the initial phase, which focuses on value addition production in the US market.
The PM Office statement pointed out that the framework encompasses minerals that are vital to the defence, aerospace, and technology sectors. Short-term measures will involve exporting of antimony, copper, gold, tungsten and REEs in Pakistan. Special teams will create plans to increase exploration and processing capacity in Pakistan’s mineral reserves in the future.
The MoU signed by NLC and Mota-Engil Group aims to expand logistics services and infrastructure projects across Pakistan. The Portuguese firm is currently surveying opportunities to align with government and private sector priorities.
Officials claim that the cooperation aims to facilitate the establishment of jobs, transfer of technologies, and sustainable development, making Pakistan a prospective regional center of massive building and logistics activities.
The two MoUs are a significant move towards encouraging foreign investment in mining, logistics, and infrastructure in Pakistan. Through integration of mineral processing plants and logistics alliances, Pakistan is preparing to increase its contribution in the world supply chain of the most vital minerals and rare earth resources.
The agreements were signed in the presence of Prime Minister Shehbaz Sharif, Deputy Prime Minister Ishaq Dar, Chief of Army Staff Field Marshal Asim Munir, and federal ministers during a meeting with the visiting delegations.
