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Tuesday, August 26, 2025

Pakistan's Buried Treasure of Rare Earth Minerals

Beneath the rugged, sun-baked mountains of Balochistan and the soaring peaks of Gilgit-Baltistan lies a secret that could reshape global technology and redefine Pakistan's economic destiny. While the world races towards a digital and green future, powered by devices and technologies we can scarcely imagine, Pakistan sits atop one of the key ingredients: a potential goldmine of Rare Earth Elements (REEs).



This isn't just geological speculation; it's a tangible opportunity. Concrete evidence suggests that out of the 17 Rare Earth Elements critical to modern industry, 12 are waiting to be unearthed in Pakistan.

What Are Rare Earth Elements and Why Do They Matter?

Think of them as the vitamins of modern technology. Rare Earth Elements are a group of 17 metals that, despite their name, are relatively abundant in the Earth's crust but are scarcely found in concentrated, mineable deposits. Their unique magnetic, phosphorescent, and catalytic properties make them utterly indispensable. They are the silent enablers of our digital age:

  • Electronics & Mobility: Smartphones, LEDs, semiconductors (chips), electric vehicle batteries, and lasers.
  • Renewable Energy: High-efficiency solar panels and wind turbines.
  • Defense & Aerospace: Precision-guided missiles, radar systems, drones, and satellite technology.

Without REEs, the technological revolution grinds to a halt.

Pakistan's Mineral Wealth: A Geological Bonanza

Pakistan is not just resource-rich; it is potentially resource-dominant. The blessings beneath its soil are staggering:

Mineral/Resource

Location

Estimated Reserves

Estimated Value (USD)

Development Status

Rare Earth Elements

Balochistan (Chagai) & Gilgit-Baltistan

N/A

~$400 Billion

Early exploration stage

Copper & Gold (Reko Diq)

Balochistan (Chagai)

14M Tons Copper, 557 Tons Gold

N/A

Agreement with Barrick Gold

Copper & Gold (Saindak)

Balochistan (Chagai)

341,000 Tons Copper, 206 Tons Gold

N/A

Operated by MCC (China)

Coal (Thar Coal Fields)

Sindh

175 Billion Tons

> Saudi & Iranian Oil Reserves

Early stage IPP transition

The Challenge of Extraction: The promise is immense, but so are the hurdles. REEs are often found within minerals like granite and monazite sand. Extracting and refining them is a complex, expensive, and technologically intensive process—an infrastructure Pakistan is still developing. This gap between possession and production is the nation's central paradox: endowed with "black gold" in Thar, yet still importing coal for power generation.

The Global Rush: A Geopolitical Opportunity

The global dynamics of REE supply create a perfect window of opportunity for Pakistan.

  • China's Dominance: Currently, China controls 60-70% of global REE production and supply.
  • Global Dependence: Major economies are dangerously reliant on a single source.
    • The USA imported 77% of its REE needs from China in 2024.
    • The European Union and Japan are similarly dependent, sourcing nearly half to two-thirds of their imports from China.
  • The Search for Alternatives: This vulnerability has sparked a frantic search for alternative suppliers. The United States, through officials like Senator Marco Rubio, has explicitly expressed interest in partnering with Pakistan for mining and refining ventures. This isn't just investment; it's a strategic move to de-risk global supply chains.

Pakistan is uniquely positioned to become a crucial new link in the global supply chain, offering the West a strategic alternative.

From Dust to Development: A Blueprint for the Future

Recognizing this potential, the Pakistani government has begun to act. The Special Investment Facilitation Council (SIFC) is pivotal in this endeavor. The "Dust to Development" Minerals Summit in August 2023 was a critical first step, resulting in several MOUs with foreign investors.

The Path Forward must include:

  1. A National Rare Earth Program: A dedicated, mission-driven initiative to map, explore, and quantify the nation's REE reserves.
  2. Strategic Joint Ventures: Partnering with experienced international firms from the US, Saudi Arabia, and beyond isn't an option; it's a necessity to acquire the required technology and expertise for refining and processing.
  3. Building Complete Value Chains: Beyond mining, Pakistan must develop industries to process not only REEs but also its vast gemstone resources (emeralds, rubies, topaz), mirroring the value-addition model of countries like India.
  4. Unlocking Local Potential: Successful development will generate thousands of skilled jobs in Balochistan and Gilgit-Baltistan, fostering regional stability and economic inclusion.

Pakistan's mineral wealth is more than just a ledger of assets; it is a key to its future. The convergence of confirmed resources and global demand presents a historic, non-replicable opportunity. With strategic vision, transparent governance, and international collaboration, the buried treasures of Balochistan and Gilgit-Baltistan can be transformed from geological wonders into the bedrock of a prosperous, technologically advanced nation. The world is watching, and more importantly, it is willing to invest. The time to dig is now.


References & Further Reading:

  1. United States Geological Survey (USGS). (2024). Mineral Commodity Summaries: Rare Earths.
  2. The Express Tribune. (2023). SIFC hosts 'Dust to Development' mining summit to attract foreign investment.
  3. Reuters. (2022). Pakistan reaches agreement to revive Reko Diq copper-gold project.
  4. The Diplomat. (2023). The Geopolitics of Rare Earth Elements.
  5. World Bank Report. (2020). The Potential for Rare Earth Element Resources in South Asia.

 

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