Zardari leaves Lahore quietly, Bilawal’s whereab…

ISLAMABAD: The United States has expressed strong confidence in Pakistan’s mineral sector, with a senior US Embassy official revealing that the Trump administration is prepared to support another mega mining project on the scale of  to invest in Pakistan despite security concerns, viewing the country’s vast mineral wealth as strategically important for future global industries. During a background briefing with journalists on Wednesday, the embassy official said Washington considers Pakistan a key partner in the global race for critical minerals that are essential for advanced technologies, clean energy, artificial intelligence, semiconductors and defence manufacturing. According to the official, the US government is encouraging American investors to explore Pakistan’s untapped mineral resources, ranging from large-scale copper and gold projects to smaller mining ventures worth only a few million dollars. US Prepared to Finance Another Mega Project The official said the US administration is ready to support another project comparable to the multibillion-dollar Reko Diq development if geological surveys and feasibility studies demonstrate strong commercial potential. He added that financing support could be extended through US institutions such as the Export-Import (Exim) Bank and the Development Finance Corporation, both of which are playing a growing role in securing global supply chains for critical minerals. The official noted that American companies are not only interested in major mining investments but are also examining opportunities to acquire, develop and expand smaller mining operations across Pakistan. Reko Diq Progress Continues Despite Delays Discussing the Reko Diq copper and gold project, the official acknowledged that work is progressing, although at a slower pace than initially anticipated. He explained that project costs are currently being reassessed, after which developers will return to financiers to finalize the remaining funding package. The first phase of the Reko Diq project is estimated to cost around $7.7 billion, while the US Exim Bank has already offered $1.25 billion in financing. However, the overall financial structure remains under discussion. The project has experienced delays due to rising construction costs and security concerns in Balochistan, prompting project stakeholders to revise cost estimates more than once. Earlier this year, Barrick Gold, which owns a 50 percent stake in the project, also reviewed development timelines because of increasing costs and security-related challenges. Major Economic Benefits Expected The embassy official said Reko Diq has the potential to transform Pakistan’s economy once it becomes fully operational. According to the estimates shared during the briefing, the project could generate nearly $2 billion in annual free cash flow. Of this amount, around $500 million would go directly to the Government of Balochistan, while another $500 million would benefit Pakistan’s state-owned enterprises. The official further stated that Pakistan’s mining sector currently contributes roughly 3 percent to the country’s economy, while Reko Diq alone could increase national GDP by approximately 0.5 percentage points, highlighting its significance for long-term economic growth. Critical Minerals Becoming Strategic Priority The US official emphasized that critical minerals have become a top strategic priority for Washington as demand continues to rise across technology, renewable energy and defence sectors. Pakistan possesses commercially attractive reserves of copper, antimony, tungsten and several other minerals considered essential for future industries. He said American companies believe Pakistan has enormous untapped potential, particularly as global demand for copper is expected to rise sharply over the coming decades. The official added that US firms are actively seeking long-term supply agreements for minerals extracted from Pakistani mines, while some investors are interested in purchasing and developing smaller mining assets. Investment Opportunities Across Pakistan Besides Balochistan, American investors are also exploring mineral opportunities in Khyber-Pakhtunkhwa, particularly for copper deposits, while rare earth mineral prospects in Gilgit-Baltistan have also attracted attention. The official said the United States is searching globally for around 60 critical minerals needed for emerging technologies, many of which are found in Pakistan. He noted that several companies have already begun exploration and extraction activities in different regions of the country. Security Remains the Biggest Challenge Despite strong investment interest, the official acknowledged that security remains one of the most significant obstacles facing mining projects in Pakistan. He said US companies fully understand the risks associated with operating in regions such as Balochistan and Khyber-Pakhtunkhwa but remain willing to invest if appropriate security arrangements are provided. The official stressed that the Pakistani government should continue strengthening security measures and facilitating investors to ensure long-term success of mining projects. He added that American companies are encouraged to partner with local firms, which possess valuable experience in navigating operational and security challenges in remote mining areas. US Calls for Transparent Investment Environment The embassy official also urged Pakistan to maintain a transparent, predictable and competitive investment climate to attract greater foreign investment into the mineral sector. He noted that Pakistan’s participation in the US Critical Minerals Initiative earlier this year reflects growing cooperation between the two countries in securing future mineral supply chains. According to the official, if exploration and investment continue at the current pace, Pakistan’s mining industry could emerge as one of the country’s strongest economic sectors over the next 10 to 20 years, creating employment, increasing exports and significantly boosting national revenues.