US ready to back mining projects

The United States has expressed strong interest in expanding investment in Pakistan's mining sector, with a U.S. embassy official saying the Trump administration is prepared to support another large-scale project comparable to Reko Diq if it proves commercially viable.

 

The official said U.S. investors are also exploring opportunities in smaller mining projects and are willing to operate despite security challenges, provided adequate safeguards are in place. The U.S. Export-Import (Exim) Bank has already offered USD 1.25 billion in financing for the Reko Diq project, although the overall funding package is still being finalized.

 

According to the official, progress on Reko Diq has slowed due to security concerns and cost revisions, but the project remains on track. Once operational, it is expected to generate around USD 2 billion in annual free cash flow, with substantial revenues benefiting both Balochistan and state-owned entities.

 

The U.S. views Pakistan as a strategically important source of critical minerals, including copper, antimony, tungsten, and rare earth elements, which are essential for industries such as artificial intelligence, semiconductors, clean energy, and defense. American companies are assessing opportunities to acquire, develop, and secure offtake agreements for mining projects across Pakistan.

 

The official added that Washington is encouraging partnerships between U.S. and Pakistani firms to help navigate local operating conditions while urging Pakistan to maintain a transparent investment environment and strengthen security to attract greater foreign investment in the minerals sector.