Pakistan has signed a deal with the U.S. over its rare earth wealth, including Balochistan’s reserves. Already the country is facing an economic crisis and now trying to leverage on mineral sources.
Pakistan signed a $500 million investment agreement with an American metals company to develop the country’s critical minerals sector, majorly in Balochistan.
Earlier, under the China-Pakistan Economic Corridor (CPEC) had Islamabad handed over control of Balochistan’s resources to Beijing. Locals of the country are already opposing it majorly.
What Will U.S. Do In Pakistan?
On Monday, Missouri-based U.S. Strategic Metals (USSM) signed a memorandum of understanding with Pakistan’s Frontier Works Organization (FWO). Under the pact, the two sides will establish the country’s largest critical minerals mining hub and a polymetallic refinery. The deal comes just weeks after Washington and Islamabad reached a trade agreement. Now Pakistan’s doors are opened for U.S. investment in mineral and energy sectors. USSM specializes in producing and recycling minerals deemed essential by the U.S. Department of Energy for advanced manufacturing and clean energy technologies.
Why General Asim Munir Went To U.S.?
Earlier Pakistan had claimed to hold trillions of dollars worth of mineral reserves. Army chief Field Marshal Asim Munir described them as a “rare earth treasure” that could help reduce Pakistan’s debt and transform its economy. His visit to the U.S. in early August is now being seen as an effort to make Americans interested in these resources.
According to Prime Minister Shehbaz Sharif’s office, the new partnership will begin with exports of easily available minerals like antimony, copper, gold, tungsten, and rare earth elements. Sharif also met delegations from USSM and Portugal’s Mota-Engil Group, the latter signing a separate agreement with Pakistan’s National Logistics Corporation.