- Reko Diq holds world's 5th largest copper-gold reserves (estimated $65B value)
- US State Department officials pledge security backing for mining projects
- Summit attracts investors from 15+ nations despite separatist attacks
Pakistan's mineral sector emerges as geopolitical hotspot as global demand for battery metals surges. The recent Pakistan Minerals Investment Forum revealed over $7.2B in preliminary investment commitments, with US firms particularly interested in lithium deposits critical for electric vehicle production. Industry analysts note Pakistan's mineral wealth could reduce China's dominance in rare earth processing if Western investments materialize.
Security remains the elephant in the room. Wednesday's fatal attack on police in Quetta underscores risks in Balochistan, home to 82% of Pakistan's mineral resources. However, Gen. Asim Munir's unprecedented guarantee of military protection for mining sites signals strategic prioritization. Security expert Dr. Ayesha Siddiqa observes: This marks the first time Pakistan's military directly ties economic development to national security strategy.
The Reko Diq case study reveals complex dynamics. After a decade-long legal dispute with Barrick Gold, Pakistan revised mining royalties from 2% to 5% in 2023. New blockchain-based revenue tracking systems aim to address provincial concerns about resource distribution. Balochistan Chief Minister Sarfraz Bugti emphasizes: Transparent benefit-sharing could turn separatist regions into economic hubs.
Washington's renewed engagement follows strained trade relations. The 29% tariff on Pakistani textiles – part of broader US-Asia trade adjustments – dropped export volumes by 14% last quarter. Prime Minister Sharif's delegation will push for mineral-linked tariff exemptions, potentially creating 45,000 mining sector jobs by 2027 if successful.
Global battery manufacturers monitor Pakistan's 2.8M ton lithium reserves – equivalent to Bolivia's Salar de Uyuni deposits. Tesla's recent diversification beyond Chinese suppliers makes this timing strategic. Mining engineer Faraz Ahmad notes: Processing infrastructure investments could position Pakistan as the MENA region's battery production hub.
Saudi Arabia's $10B mining sector commitment and China's CPEC infrastructure upgrades create multipolar investment opportunities. However, environmental concerns persist – the new Mineral Sustainability Index shows Pakistan ranks 127th globally in mining ecological safeguards. International firms face pressure to implement ISO 14001 standards from project inception.
