Key Highlights:
- Pakistan Army Chief Field Marshal Asim Munir unveils ambitious plan to leverage country’s Pakistan rare earth minerals worth $3-5 trillion
- Reko Diq mining project positioned as economic cornerstone, targeting $2 billion annual revenue from 2025
- US interest in Pakistan rare earth minerals surges amid efforts to reduce dependency on Chinese supply chains
The nation’s economic fortunes hang in the balance as Army Chief Field Marshal Asim Munir positions Pakistan rare earth minerals as a transformative solution to the country’s mounting debt crisis. In a recent statement to Pakistani media, Munir declared that Pakistan possesses a “rare earth treasure” capable of reducing national debt and elevating the nation among the world’s most prosperous societies.
This bold assertion comes amid growing international interest in Pakistan rare earth minerals, particularly from the United States, which seeks to diversify its supply chains away from Chinese dominance in critical materials. The timing of Munir’s announcement is significant, occurring shortly after Pakistan received its first crude oil shipment from the US under a new trade agreement, signaling a potential shift in strategic alliances.
Strategic Positioning of Pakistan’s Rare Earth Mineral Wealth
The mineral sector encompasses vast reserves spanning approximately 600,000 square kilometers, with 92 identified minerals of which 52 are commercially exploited. The nation currently produces 68.52 million metric tons of minerals annually, employing over 300,000 workers across more than 5,000 operational mines. However, despite this enormous potential, the mineral sector contributes merely 3% to Pakistan’s GDP, with exports representing only 0.1% of global mineral trade.
The government is preparing to streamline investment processes by transferring all Pakistan rare earth minerals sites from provincial control to a single federal authority. This consolidation would require a constitutional amendment to override the 18th Amendment, which currently grants provinces control over natural resources. Officials estimate Pakistan rare earth minerals reserves to be worth between $3-5 trillion, with plans to invite investments from multiple countries including the United States, China, Saudi Arabia, the United Kingdom, Turkey, and the UAE.
| Mineral Type | Reserves (Million Tons) | Grade Quality |
|---|---|---|
| Copper | 1,882 | Low to High |
| Gold | 1,656 | Low to High |
| Iron Ore | 1,427 | Low to High |
| Lead-Zinc | 23,720 | Low to High |
| Coal | 185,000 | Low to Medium |
| Gypsum | 6,000 | Medium to High |
Reko Diq: The Crown Jewel of Pakistan Rare Earth Minerals Development
- The Reko Diq project represents one of the world’s largest untapped copper and gold deposits
- Expected to generate $2 billion annually from 2025, with potential for year-over-year increases
- Located in conflict-ridden Balochistan province, presenting significant security challenges
The Reko Diq mining project in Balochistan serves as the centerpiece of Munir’s economic revival strategy for Pakistan rare earth minerals. This massive undertaking, jointly owned by Canadian miner Barrick Gold (50%), the Pakistan Government (25%), and the Government of Balochistan (25%), is projected to house 12.3 million tonnes of copper and over 20 million ounces of gold. The Asian Development Bank has recently approved a $300 million financing package for the project, marking the largest-ever foreign direct investment in Pakistan.
When operational, Reko Diq is expected to become the world’s fifth-largest copper mine, producing 800,000 tonnes per year of copper concentrate in its first phase. The mine is scheduled to begin production in 2028 and operate for at least 37 years, with the potential to generate $70 billion in free cash flow over its lifetime. Saudi Arabian mining fund Manara Minerals is also set to purchase a 10-20% stake valued between $500 million and $1 billion from the Pakistan Government.
Despite the project’s promise, its location in Balochistan poses significant challenges for Pakistan rare earth minerals extraction. The province has been plagued by insurgency and security concerns, which could impact both operational costs and international investor confidence. Additionally, the region is heavily invested with Chinese economic and geopolitical interests, creating potential tensions as the US expresses increased interest in Pakistan rare earth minerals.
US Strategic Interest in Pakistan Rare Earth Minerals and Geopolitical Implications
The United States has demonstrated unprecedented interest in Pakistan rare earth minerals, marking a significant shift in regional diplomatic priorities. According to The Washington Post, President Trump’s outreach to Islamabad is “less about oil than minerals,” as Washington seeks alternatives to China’s dominance in rare earth supply chains. This strategic pivot comes amid deteriorating US-India relations, with Washington recently imposing 50% tariffs on Indian goods while simultaneously strengthening ties with Pakistan.
US officials are particularly interested in accessing mining projects in Northern Balochistan and Southern Khyber Pakhtunkhwa, areas rich in Pakistan rare earth minerals critical to electronics and defense technology. These materials are essential for manufacturing semiconductors, batteries, and military equipment, making them strategically vital for national security purposes. The timing of this interest aligns with broader US efforts to reduce dependency on Chinese supply chains, which currently control approximately 80% of global rare earth production.
In the first phase of allocation, China will be granted exploration rights in the Gilgit-Baltistan region, while the US may gain access to different geographical areas for Pakistan rare earth minerals development. This careful balancing act reflects Pakistan’s attempt to leverage its mineral wealth to strengthen relationships with both superpowers without alienating either party. Munir has emphasized his commitment to maintaining this delicate balance, stating his intention not to “sacrifice one friend for the other”.
Economic Viability and Implementation Challenges for Pakistan Rare Earth Minerals
- Pakistan’s mineral exports reached $1.635 billion in 2022-2023, up from $1.360 billion in 2020-2021
- Current mineral production stands at 49.8 million metric tons annually
- Sector employs 300,000 workers across 50,000 small and medium enterprises
The economic potential of Pakistan rare earth minerals sector is substantial, but realizing this potential faces significant hurdles. Current mineral production reached 49.8 million metric tons in 2022, representing a modest increase from previous years. However, the sector’s contribution to GDP remains disappointingly low at just 3%, indicating substantial room for growth and development.
Pakistan’s track record with major resource discoveries raises concerns about the feasibility of Munir’s ambitious projections for Pakistan rare earth minerals. In 2019, then-Prime Minister Imran Khan announced a potential “massive oil find” offshore that was later dismissed by the Petroleum Division after unsuccessful drilling operations. This precedent has led to skepticism about current claims regarding both oil reserves and Pakistan rare earth minerals potential.
The Reko Diq project alone requires approximately $6.6 billion in total investment, with $3.5 billion needed from international partners including the US, World Bank, and other development institutions. Barrick Gold and its partners are currently pursuing over $2 billion in financing from various international lenders, with term sheets expected by early Q3 2025. The project has already secured $300 million from the Asian Development Bank and is negotiating with multiple development finance institutions for additional funding.
Final Perspective on Pakistan Rare Earth Minerals Development
Pakistan rare earth minerals represent a genuine opportunity for economic transformation, but success depends on overcoming substantial political, security, and logistical challenges. While the country’s mineral reserves are undoubtedly valuable, particularly in the context of global supply chain diversification, the path from potential to prosperity remains fraught with obstacles. The Reko Diq project offers the most immediate promise, with concrete financing arrangements and established partnerships providing a realistic foundation for development.
Munir’s strategy of balancing relationships between the US and China through Pakistan rare earth minerals allocation demonstrates sophisticated geopolitical maneuvering. However, the success of this approach will ultimately depend on Pakistan’s ability to maintain political stability, ensure security in mining regions, and execute complex international agreements effectively. The nation’s previous experience with overstated resource discoveries serves as a cautionary reminder that ambitious projections must be backed by verifiable results.
The international community’s growing interest in Pakistan rare earth minerals provides a unique window of opportunity that may not remain open indefinitely. Whether Pakistan can capitalize on this moment to fundamentally reshape its economic trajectory will depend on the government’s ability to translate Munir’s vision into tangible mining operations and sustained revenue generation.
