The United States (US) administration under President Donald Trump stands ready to finance another mineral project on the scale of Reko Diq in Pakistan, while American investors show willingness to absorb security risks to enter the country’s mining sector.
A US embassy official stated during a background briefing in Islamabad that Washington DC maintains a strong interest in Pakistan’s mineral potential, with American firms exploring investments ranging from small-scale mines to large copper reserves.
“The US is ready to finance another Reko Diq-sized project where the feasibility is showing potential,” the official said.
However, ongoing security concerns continue to stall progress on the $7.7 billion first phase of the Reko Diq project in Balochistan. The project is moving forward slower than initially projected as stakeholders recalculate costs before presenting a final package to financiers.
While the Export-Import Bank of the US (Exim Bank) offered $1.25 billion toward Reko Diq, final financing arrangements remain incomplete. Barrick Gold, which holds a 50 percent stake in the venture, announced a project review in March following security issues and upward revisions to initial cost estimates.
Once operational, the project aims to generate $2 billion annually in free cash flow, distributing half of it to the Balochistan government and the other half to state-owned enterprises.
The mining sector currently contributes three percent to Pakistan’s Gross Domestic Product with Reko Diq projected to add an additional 0.5 percentage points.
The US drive aligns with Washington’s broader strategy to secure critical mineral supply chains through funding mechanisms like the Exim Bank and the Development Finance Corporation.
American interest targets 60 specific minerals vital for artificial intelligence, semiconductors, computing, energy, and defense production several of which exist in commercial quantities across Pakistan.
Apart from large-scale extraction, US firms are evaluating offtake agreements from smaller domestic operations and exploring copper deposits in Khyber Pakhtunkhwa (KP) alongside rare earth minerals in Gilgit.
Pakistan holds significant reserves of copper, antimony, and tungsten, with local and international entities already operating on the ground.
Addressing operational risks in regions such as Balochistan and KP, the embassy official noted that American businesses favor joint ventures with Pakistani companies to manage local conditions.
“US companies understand the security risks in Pakistan and are willing to take them,” the official said. “We encourage the government of Pakistan to do everything it can to provide security and assistance.”
Pakistan officially joined the US Critical Minerals Initiative in Washington earlier this year. Washington continues to press Pakistani authorities to maintain transparent regulatory frameworks and equal market access for foreign capital.
“The critical minerals issue is very important for us because it is about economic security, prosperity and national defence,” the official added.
