Pakistan seals 13 mineral deals with foreign investors

Pakistan has announced 13 mineral cooperation agreements and joint ventures with international companies and countries, marking a major step towards transforming its mining sector and reducing dependence on exports of raw minerals.

The agreements were announced on Friday at the concluding session of the Pakistan Mineral Investment Forum, where Prime Minister Shehbaz Sharif and Chief of Defence Forces and Chief of Army Staff Field Marshal Asim Munir called for greater foreign investment in the country’s mineral resources.

Both leaders stressed that Pakistan wanted to move beyond extracting and exporting unprocessed minerals and instead develop complete industrial value chains, covering exploration, processing and manufacturing.

Addressing the forum, Prime Minister Shehbaz said mineral development must go hand in hand with environmental protection. He urged investors to adopt modern technologies and comply with international standards to protect water resources and ensure the health and safety of mining workers.

The prime minister said Pakistan was seeking long-term investment partnerships that would extend beyond mineral extraction to local processing and manufacturing. Such arrangements, he added, would generate greater economic benefits for the country while providing attractive opportunities for foreign investors.

Meanwhile, Barrick Gold Executive Chairman John Thornton reaffirmed his company’s commitment to Pakistan, dismissing uncertainty surrounding the future of the Reko Diq project. He said the company, which holds a 50 per cent stake in the project, intended to remain a long-term partner of Pakistan.

Pakistan also signed two memoranda of understanding with US-based Ivanhoe Atlantic, which brings advanced technologies for mineral exploration and extraction.

Among the major announcements was a joint venture between Turkiye’s Lidiya Mining and Mari Minerals (Private) Limited for exploring and developing mineral resources in Chagai district of Balochistan.

Another partnership was established between Britain’s MSALABS Limited, a subsidiary of Capital Limited, and Mari MSA Labs (Private) Limited to set up a modern commercial mineral testing laboratory in Pakistan.

Turkiye’s MTA International Company (MTAIC) also entered into a strategic framework agreement with Mari Minerals for mineral exploration and mining development in Chagai.

The Frontier Works Organisation (FWO) signed an agreement with Ivanhoe Mines to collaborate on mineral exploration and mining projects in Balochistan. The agreement was signed by Ivanhoe Mines founder and co-chairman Robert Friedland and FWO Chief Executive Officer Engineer Abdul Sami.

Pakistan and Japan also exchanged a statement of intent to strengthen cooperation and support for the Geological Survey of Pakistan.

In another development, the Geological Survey of Pakistan signed agreements with Turkiye’s General Directorate of Mineral Research and Exploration and Germany to expand cooperation in geological research and geosciences.

A separate joint venture between MTA International Company and the Pakistan Mineral Development Corporation (PMDC) will focus on exploring antimony, copper, gold, silver, molybdenum and other critical minerals in Pishin district of Balochistan.

The Geological Survey of Pakistan and the British Geological Survey also agreed to cooperate in geosciences.

Another partnership involving International Geosciences Services and the PMDC will focus on assessing gemstone resources under internationally recognised JORC standards and developing a model mine that can be replicated elsewhere.

Two additional agreements covered advanced geological surveying. Shift Geophysics and Southern Geosciences signed an agreement for an airborne geophysical survey, while Fleet Space ANT entered into an agreement for ambient noise tomography.

Pakistan possesses substantial mineral wealth, with estimated reserves valued at around $8 trillion across approximately 600,000 square kilometres, according to the Institute of Cost and Management Accountants.

Despite this potential, the mining sector has historically contributed less than 3 per cent to the country’s gross domestic product (GDP).

Industry estimates suggest that with improved governance, better security and increased investment, annual mineral exports could rise from approximately $3 billion to $8 billion. The country’s GDP growth could also increase from around 3 per cent to 6 per cent.

However, unlocking this potential will require more than expanding mining operations. Pakistan needs investment in geological surveys, modern extraction technologies, infrastructure, financing and industrial processing facilities.

Consistent regulations, environmental protection and improved security will also be essential to attract international investors and turn mineral resources into commercially viable projects.

The latest agreements reflect Pakistan’s efforts to strengthen international partnerships, develop domestic processing capabilities and make its mineral sector a greater contributor to economic growth, employment and industrial development.