U.S. investment interest grows in Pakistan’s critical minerals sector

Pakistan’s critical minerals sector is attracting renewed interest from American companies, with investors exploring opportunities in copper, antimony and other strategic minerals as global competition intensifies to secure supplies for defence, artificial intelligence and clean energy industries.

U.S. companies are exploring investments ranging from acquiring and developing smaller mines to participating in major copper projects, according to U.S. officials. Washington is supporting the effort through the U.S. International Development Finance Corporation and the Export-Import Bank of the United States, which has committed USD 1.25 billion towards financing the Reko Diq copper and gold project, although the final financing package is still being negotiated.

The development comes as Pakistan and the U.S. make progress towards a reciprocal trade framework, highlighting broader economic engagement beyond traditional trade.

Pakistan's mineral wealth gains strategic importance

Pakistan has more than 90 identified minerals, with more than 50 commercially exploited, according to the Geological Survey of Pakistan. Among its most valuable deposits are copper, gold, chromite and antimony, while exploration continues for rare earth elements and lithium - minerals increasingly sought for semiconductors, electric vehicles, renewable energy systems and advanced defence technologies.

U.S. officials said American companies are looking beyond Pakistan’s flagship projects, exploring opportunities to acquire smaller mines and secure long-term mineral supplies for processing in the U.S. Interest extends to antimony deposits in Chitral, copper prospects in Waziristan and mineral potential in Gilgit-Baltistan and Balochistan.

Despite security challenges in some mining regions, officials said companies remain interested because of the scale and quality of the deposits.

Reko Diq remains the centrepiece

The biggest opportunity remains Reko Diq in Balochistan, one of the world’s largest undeveloped copper and gold deposits. Operated by Barrick Gold in partnership with the federal and Balochistan governments, the mine is expected to produce around 200,000 tonnes of copper and 250,000 ounces (about 7.8 tonnes) of gold annually during its initial phase, with an estimated mine life of more than 40 years.

U.S. officials said the project continues to move forward despite revised costs and ongoing financing discussions. Pakistan’s mining sector currently contributes around 3 per cent of GDP, while Reko Diq alone could increase economic output by another 0.5 percentage points once operational. Officials also said Washington would be prepared to support another project of similar scale if commercially viable opportunities emerge.

Global race for critical minerals creates new opportunities

Despite its vast mineral reserves, Pakistan exports only a fraction of its mining potential. Current exports consist mainly of copper, chromite, marble, granite, gypsum, rock salt, lead and zinc, with China historically the largest destination for copper concentrate from the Saindak mine, alongside markets including the United Arab Emirates, Japan, South Korea and Europe. The sector generates only a few hundred million U.S. dollars annually, well below its estimated potential.

The Trump administration has made securing critical mineral supply chains a strategic priority as it seeks to reduce reliance on China for materials used in advanced manufacturing and national defence.

Against that backdrop, Pakistan is emerging as one of several resource-rich countries attracting renewed international attention, although officials acknowledge that regulatory reform, institutional capacity and security remain key factors in converting geological potential into long-term investment.

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News Politics Pakistan Balochistan United States South Asia defence cooperation Artifical intelligence