Pakistan, US sign MoU on critical minerals, rare earths

ISLAMABAD: Companies from Pakistan and the United States on Monday inked a landmark Memorandum of Understanding (MoU) on developing and processing critical minerals and rare earths, in a major breakthrough that would lead to transfer of technology and opening new job opportunities.

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On the other hand, the National Logistics Corporation (NLC) signed another MoU with Mota-Engil Group — a Portuguese entity which is a global leader in engineering and construction is actively working new opportunities to expand its footprint across West Asia.

The press release issued by the PM Office says a delegation including USSM (United States Strategic Metals) and Mota-Engil met with Prime Minister Shehbaz Sharif.

During the meeting at the Prime Minister’s House, Deputy Prime Minister Ishaq Dar, Chief of the Army Staff Field Marshal Asim Munir and federal ministers were also present.

The delegation is visiting Pakistan to explore opportunities for expansion of mining operations in Pakistan and assess potential for value addition in mineral resources and development of supporting infrastructure.

The visiting companies expressed readiness to invest in establishing value-addition facilities within the country, enhancing mineral processing capacity, and developing large-scale infrastructure projects linked to the mining sector, the statement added.

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As a result, two MoUs focusing in development and processing of critical minerals, including rare earth elements (REEs), and logistics services were signed.

It “mark a milestone in Pakistan’s efforts to attract global investment in the mining and logistics sectors, the PM office said.

EXTRACTION AND PROCESSING

The most salient feature of the agreement on critical minerals and rare earths is that it’s not limited to extraction only as the US company would also establish a refinery to process the precious natural resources that are a key of modern economy.

It is the Frontier Works Organisation (FWO) which inked the document with USSM, which is involved in producing critical minerals — cobalt, nickel and lithium.

The USSM would invest $500 million in the first phase, under a venture that is designed the needs of US market.

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In this regard, the PM Office said the document “establishes a framework for collaboration across a range of critical minerals essential for the defence, aerospace, and technology industries”.

About the future plans, the statement said, “The partnership will begin immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and rare earth elements.”

However, “this cooperation lays the foundation for scaling up towards the establishment of a USSM proprietary, highly flexible poly-metallic refinery in Pakistan”, establishment of the refinery to “produce intermediate and finished products”.

Later, the two sides would form “dedicated teams to explore the full potential of Pakistan’s vast resource base, identifying critical minerals for immediate export, and building an anchor position for a long-term partnership in exploration, extraction, and processing”.

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INFRASTRUCTURE

As far the Mota-Engil is concerned, the PM Office said, “The current survey of opportunities in Pakistan aims to identify priority markets where Mota-Engil can align with government visions and private sector initiatives.

The development comes as Mota-Engil “seeks to build long-term partnerships that leverage its global know-how while creating value locally through job creation, technology transfer, and sustainable
development”.