Pakistan Ships First Rare Earth Minerals Consignment to US: A $500 Million Investment Partnership

Islamabad:

Pakistan and the United States are embarking on a significant new chapter in their economic and strategic relationship with the implementation of a rare earth minerals export agreement, according to Dawn news outlet.

The report indicates that US Strategic Metals (USSM), which formalized a Memorandum of Understanding (MoU) with Pakistan in September, has delivered its initial shipment of mineral samples to the United States as part of the arrangement. The American corporation intends to invest approximately $500 million to establish mineral processing and development facilities within Pakistan.

Washington-based sources informed Dawn that this shipment represents a critical advancement toward Pakistan's participation in the global critical minerals supply chain, an increasingly essential sector for worldwide industrial development and national security interests.

The consignment, prepared locally in collaboration with the Frontier Works Organisation (FWO), contains antimony, copper concentrate, and valuable rare earth elements including neodymium and praseodymium.

USSM released a statement characterizing the delivery as "a milestone in the Pakistan-US strategic partnership," further noting that the MoU "establishes a roadmap for cooperation across the entire mineral value chain from exploration and processing to the establishment of refineries inside Pakistan."

Stacy W Hastie, CEO of USSM, stated that this initial delivery "opens an exciting chapter of collaboration between USSM and Pakistan's Frontier Works Organisation, aimed at expanding trade and deepening friendship between our two countries."

According to Dawn, this agreement could provide Pakistan with significant entry into the global critical minerals market, potentially generating billions in revenue, creating employment opportunities, and enabling technological transfer. The nation's untapped mineral reserves are estimated at approximately $6 trillion, ranking it among the world's most resource-rich countries.

For the United States, this partnership offers enhanced access to essential raw materials while decreasing reliance on dominant external suppliers currently controlling the global minerals marketplace.

However, Pakistan's opposition party, the Pakistan Tehreek-e-Insaf (PTI), has expressed strong concerns regarding the agreement. PTI Information Secretary Sheikh Waqqas Akram called on the government to disclose complete details of what he termed "secret deals" with Washington.

Referring to the USSM shipment and a recent Financial Times report alleging a proposal to offer Pasni Port to the US, Akram stated that such "reckless, lopsided, and secretive agreements would further inflame the already volatile situation in the country."

He insisted that parliament and the public be properly informed and that "full details of all such deals be made public." Akram emphasized that PTI "would never accept agreements struck at the expense of the people and the state's interests."

Meanwhile, Dawn reported that military sources have dismissed the claims presented in the Financial Times report, clarifying that the proposal mentioned in the article was "a commercial idea" rather than "official policy."

Akram also made a historical comparison, urging the government to "learn from the disastrous consequences of Mughal Emperor Jahangir's 1615 decision to grant trading rights to the British at Surat Port, which ultimately led to colonial control."

Amid growing tensions between the Pakistan Peoples Party (PPP) and the Pakistan Muslim League-Nawaz (PML-N), Akram suggested that their public disputes were a "well-thought-out plan" to "divert public attention from chronic national issues," as reported by Dawn.