Govt seeks US investment in minerals
With plans underway to encourage the United States to invest in the mineral-rich Balochistan province, the government is going to organise the Pakistan Minerals Investment Forum (PMIF) on November 12-13.
PMIF26 was originally scheduled to be held on April 8-9 in Islamabad but was rescheduled. During the last event, the US and its allies dominated the conference while Chinese participation was not much prominent. Later, a separate event was held for Chinese investors.
So far, no US company is operating in Balochistan but Pakistan is now urging Washington to lead investment in Balochistan's minerals despite security risks. Earlier, a Canadian firm delayed work on the Reko Diq copper and gold mining project due to the beginning of US-Iran war.
The last year's edition of the Pakistan Minerals Investment Forum attracted 5,000 delegates from more than 50 countries. The event saw the signing of 16 memoranda of understanding (MoUs) and featured 18 panel discussions. For the upcoming event, Pakistan is desperately looking towards the US to invest in mineral resources in Balochistan.
Export-Import Bank of the US has already approved $1.25 billion in December 2025, which the US embassy said could unlock up to $2 billion in American mining equipment and services exports and support roughly 13,500 jobs in both countries. Reko Diq's first-year shipments, once operational, are projected to generate $2.8 billion in exports.
On September 8, 2025, Pakistan's Frontier Works Organisation and Missouri-based US Strategic Metals (USSM) signed two MoUs focusing on the development and processing of critical minerals, including rare-earth elements, and logistics services. The agreements establish a framework for collaboration in scores of critical minerals essential for defence, aerospace and technology industries.
According to the Prime Minister's Office, the partnership will begin immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten and rare-earth elements. This lays the foundation for scaling up towards establishing a USSM's highly flexible poly-metallic refinery in Pakistan.
The refinery will produce intermediate and finished products to meet the rapidly growing demand in the US market. The first phase is envisaged to result in an investment of $500 million in critical minerals. Next steps include forming dedicated teams to explore the full potential of Pakistan's vast resource base, identifying critical minerals for immediate export and building a strong base for long-term partnership in exploration, extraction and processing. Importantly, their cooperation will prioritise sustainability, profitability and environmental responsibility to ensure benefits for the people of both nations.
Pakistan's mineral reserves are estimated at around $8 trillion and spread over 600,000 square kilometres, according to the Institute of Cost and Management Accountants (ICMA). The vast mineral resources highlight the massive economic potential of the mining sector. The sector has historically contributed less than 3% to the gross domestic product (GDP), ICMA said. With strong governance and security, annual mineral exports could rise from about $3 billion to $8 billion and GDP growth could climb from roughly 3% to 6%.
The challenge, however, is to turn the geological potential into bankable projects, exports, jobs and industrial capacity. This requires more than mining and greater focus on exploration, geological data, modern technology, infrastructure, financing, predictable regulation, environmental safeguards and partnerships with international companies. Pakistan's policy direction is increasingly focused on building that ecosystem.
Reko Diq project
Reko Diq, located in Balochistan's Chagai district, has one of the world's largest undeveloped copper and gold deposits. The project is a joint venture between Barrick Mining, which holds a 50% stake, the Balochistan government with 25% shareholding and three federal state-owned enterprises having 25% interest. In February 2025, Barrick announced completion of the updated feasibility study for the project. Reko Diq will be a major contributor to Pakistan's economy and is also expected to have a transformative impact on Balochistan.
The updated study estimates a 37-year mine life, with total capital investment of $8.83 billion. The project will be developed in two phases, where phase-I requires around $5.6-$6 billion. Production is expected to begin by the end of 2028.
In phase-I, the project will process 45 million tonnes of ore annually, producing about 240,000 tonnes of copper and 297,000 ounces of gold. Phase-II, planned for 2034, will double the processing capacity to 90 million tonnes per year, raising average annual production to 460,000 tonnes of copper and 520,000 ounces of gold for first 10 years.
According to the feasibility study, Reko Diq has probable mineral reserves of around 3 billion tonnes, containing an estimated 15 million tonnes of copper and 26 million ounces of gold. Barrick estimates the project could generate $90 billion in operating cash flow and $70 billion in free cash flow over its mine life. Reko Diq is the largest foreign direct investment (FDI) project in Balochistan.
International lenders have assembled a financing package exceeding $2.6 billion. The Asian Development Bank approved $410 million in August 2025 – $300 million in loans and a $110 million guarantee for Balochistan's equity stake. The International Finance Corporation and World Bank approved a $700 million concessional loan in June 2025.
Global copper demand is forecast to grow 24% to reach 42.7 million tonnes a year by 2035, driven by electrification, according to Wood Mackenzie. The International Energy Agency has said electricity demand from AI-driven data centres will accelerate this further.