The United States is prepared to finance another mining project on the scale of Reko Diq if feasibility studies demonstrate commercial potential, a US Embassy official said on Wednesday, highlighting Washington’s growing interest in Pakistan’s critical minerals sector.
Speaking during a background briefing, the official said the Trump administration is actively seeking to strengthen global critical mineral supply chains and views Pakistan as a strategic partner due to its significant reserves of copper, antimony, tungsten and other minerals essential for advanced technologies.
“The US is ready to finance another Reko Diq-sized project where the feasibility is showing potential,” the official said.
US Investors Eye Pakistan’s Mineral Wealth
According to the official, American companies are exploring multiple investment opportunities across Pakistan’s mining sector.
Some firms are interested in acquiring and developing smaller mines worth only a few million dollars, while others are pursuing large-scale investments in copper projects and long-term mineral extraction.
The official added that US companies are also evaluating opportunities to secure offtake agreements from smaller mines for processing and export to the United States.
Critical Minerals a Strategic Priority
The United States has identified 60 critical minerals considered essential for artificial intelligence, semiconductors, computing, clean energy and defence industries.
Several of these minerals are found in Pakistan, including:
- Copper
- Antimony
- Tungsten
- Rare earth minerals
The official noted that Pakistan possesses commercially viable reserves of several strategic minerals, making the country an increasingly attractive destination for international mining investment.
“Pakistan has very viable reserves of copper, antimony and tungsten,” the official said.
US companies are also exploring copper deposits in Khyber Pakhtunkhwa and rare earth mineral prospects in Gilgit-Baltistan.
Reko Diq Financing Progress
The official confirmed that the Reko Diq project continues to move forward, although implementation has been slower than initially anticipated as project costs are being recalculated.
The US Export-Import (Exim) Bank has already offered $1.25 billion in financing for the project, although the overall financing package has yet to reach financial close.
Last year, Petroleum Minister Ali Pervaiz Malik stated that the project was close to securing approximately $3.5 billion in debt financing as part of the estimated $7.7 billion total project cost.
Once operational, Reko Diq is expected to generate approximately $2 billion in annual free cash flow, with revenues shared between the Government of Balochistan and Pakistan’s state-owned enterprises.
Mining Sector Could Transform Pakistan’s Economy
The embassy official said Pakistan’s mining industry currently contributes around 3% to the national economy but has the potential to become a major economic driver over the next 10 to 20 years.
According to the official, Reko Diq alone could increase Pakistan’s GDP by approximately 0.5 percentage points while creating long-term economic opportunities.
The Trump administration is supporting overseas critical mineral projects through financing mechanisms offered by the US Export-Import Bank (Exim Bank) and the US International Development Finance Corporation (DFC).
“The critical minerals issue is very important for us because it is about economic security, prosperity and national defence,” the official said.
Security Challenges Remain
The US official acknowledged that many of Pakistan’s promising mineral deposits are located in areas facing security challenges, particularly Balochistan and Khyber Pakhtunkhwa.
However, American investors remain willing to operate in these regions provided appropriate security arrangements are in place.
“US companies understand the security risks in Pakistan and are willing to take them,” the official said.
The official added that Washington encourages American firms to partner with Pakistani companies that possess local expertise and understand the operating environment.
“We encourage the Government of Pakistan to do everything it can to provide security and assistance,” the official added.
US Calls for Transparent Investment Environment
The embassy official also stressed that the United States continues to encourage Pakistan to maintain a transparent, predictable and level playing field for foreign investors.
According to the official, improving investment conditions and strengthening security will help unlock Pakistan’s vast mineral potential while attracting greater international investment into the country’s mining sector.
