The United States Export-Import Bank has approved $1.25 billion in financing for mining critical minerals at the Reko Diq site in Pakistan, a significant move towards expanding bilateral ties and ensuring rare earths supplies for America’s exponential development needs.
Reko Diq is of one of the world’s largest undeveloped copper and gold deposits in the mineral-rich Balochistan province.
President Donald Trump has made securing rare minerals a priority amid trade tensions with China, the largest supplier of the metals, which the United States uses in electronic, defense, and automobile sectors.
As such financing facility by the U.S. federally owned EXIM Bank marks a pivotal moment in fostering long-term economic growth and strategic collaboration in the global critical minerals market.
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The US Embassy in Islamabad highlighted the project’s potential to fuel prosperity for both the United States and Pakistan.
“With a new commitment of $1.25 billion in EXIM Bank financing, the US-Pakistan partnership will drive economic growth in Balochistan,” the embassy stated on Wednesday.
A Major Mining Venture in a key region
Reko Diq, a massive copper and gold deposit in southwestern Pakistan, is poised to become a critical global resource for minerals.
The project is a joint venture between Canada’s Barrick Gold, which holds a 50% stake, and Pakistani stakeholders, who own the remaining share. Mining operations are expected to begin in 2028.
In a video message, Natalie Baker, Chargé d’Affaires at the US Embassy, underscored the long-term impact of the project.
She emphasized that EXIM’s financing will support the procurement of up to $2 billion in high-quality US mining equipment and services necessary to establish and operate the mine. The project is expected to generate significant employment, with up to 6,000 jobs in the US and 7,500 jobs in Balochistan, Pakistan.
Strengthening US-Pakistan Economic Ties
Baker described the Reko Diq project as a model for future mining ventures that benefit both American exporters and local communities in Pakistan.
“The Reko Diq project serves as a blueprint for mining projects that will foster employment and prosperity in both our nations,” she said.
The diplomat noted that the Trump administration had made such deals a central aspect of American diplomacy.
“We look forward to seeing further agreements between U.S. companies and their Pakistani counterparts in the critical minerals and mining sector,” Baker added.
A Broader Strategic Partnership
This financing deal is part of a broader strategy to secure critical mineral supply chains, as part of the Washington’s ongoing efforts to strengthen economic and security cooperation with Pakistan.
Last month, EXIM Bank Chairman John Jovanovic revealed to the Financial Times that the bank plans to invest $100 billion to support US and allied supply chains for critical minerals, nuclear energy, and liquefied natural gas.
The first tranche of these investments is expected to include projects in Egypt, Pakistan, and Europe.
In September, U.S. Strategic Metals (USSM) and Pakistan’s Frontier Works Organization (FWO) signed a $500 million memorandum of understanding (MoU) to expand cooperation in the critical minerals sector, further deepening economic and strategic ties.
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Just a month later, Pakistan successfully delivered its first batch of rare earth elements and critical minerals to USSM in the United States.
Balochistan, which has experienced a low-intensity insurgency in the last few decades, is a strategically located resource-rich southwestern province of Pakistan, close to both Iran and Afghanistan.
China has also made massive investments in the province to boost an efficient corridor for Chinese trade with the Gulf and the rest of the world.
Pakistan is one of the few countries that have sustained close ties with the United States and China, the world’s largest economies, as it seeks to become a hub of future trade and connectivity, linking Central Asia, South Asia, China, and the Gulf through its infrastructure and Gwardar Deepsea port.
Muhammad Luqman is Associate Editor at Views News Now. He writes on wide-ranging issues including economy, South Asia, the Middle East, agriculture, economy and innovation. Luqman has worked some of the leading news organizations and won acclaim for his original and research-based works.
