Govt signs major MoU with USSM for critical minerals development

September 09, 2025 (MLN): Pakistan on Monday signed a landmark Memorandum of Understanding (MoU) with United States Strategic Metals (USSM), a Missouri-based company specializing in critical minerals, marking an initial $500 million investment into the country’s mineral sector.

The agreement was formalized in a ceremony at the Prime Minister’s House, where the Frontier Works Organisation (FWO) signed the deal on Pakistan’s behalf.

Prime Minister Muhammad Shehbaz Sharif, Chief of Army Staff (COAS) Field Marshal Asim Munir and other senior government officials were present, stressing the strategic importance Islamabad attaches to the partnership.

The visiting USSM delegation was joined by Acting Deputy Chief of Mission at the U.S. Embassy, Zach Harkenrider. The U.S. Embassy noted that the partnership would significantly accelerate Pakistan’s mineral exploration and development efforts.

USSM, headquartered in St. Louis, Missouri, is a leading U.S. firm engaged in the recycling and production of critical minerals.

The company focuses on materials identified by the U.S. Department of Energy as essential for advanced manufacturing, clean energy, and national defense including cobalt, nickel and copper. USSM is also known for extracting critical metals from recycled lithium-ion batteries.

The agreement with FWO aims to unlock Pakistan’s rich reserves of copper, gold, antimony, tungsten and rare earth elements (REEs).

Two MoUs were signed: one centered on the development and processing of critical minerals, including REEs, and another to facilitate logistics services for mining operations. The collaboration is set to begin immediately with the export of readily available minerals from Pakistan.

U.S. Chargé d’Affaires Natalie Baker hailed the agreement as a positive development in U.S.-Pakistan relations, stating, “This is yet another example of the strength of the U.S.-Pakistan bilateral relationship that will benefit both countries.”

The Prime Minister’s Office confirmed that the USSM delegation held a series of high-level meetings with top Pakistani officials, including the Prime Minister, the Army Chief, the Minister for Petroleum and the Minister for Commerce.

During these meetings, the delegation was briefed on Pakistan’s vast mineral resources and the potential for local value addition, mineral processing, and infrastructure development.

The U.S. Embassy expressed confidence in the potential for further investment in the sector, with Washington increasingly viewing Pakistan’s mineral wealth as strategically important.

Earlier this year, senior U.S. State Department official Eric Meyer emphasized the role of critical minerals as foundational to the United States’ most advanced technologies.

Economic ties between Pakistan and the United States have seen notable improvement in recent months. In July, both countries agreed to reduce reciprocal tariffs from 29% to 19% and concluded new trade agreements.

The latest MoU marks a significant milestone in strengthening bilateral economic cooperation, opening the door to greater U.S. investment and strategic engagement in Pakistan’s mineral industry

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