Washington D.C. – The United States has announced a groundbreaking $1.3 billion Reko Diq investment in Pakistan’s Balochistan province as part of its newly launched Project Vault initiative. This significant development, announced by the State Department on Wednesday, represents a major shift in US investment strategy focusing on critical minerals and rare earths that could reshape the global market.
The Reko Diq investment stands out as the only international allocation under Project Vault, with all other investments concentrated within the United States. This distinction highlights the strategic importance of Pakistan’s mineral resources in America’s broader plan to secure critical mineral supplies and reduce dependence on other global suppliers.
Understanding Project Vault Initiative
Project Vault was officially announced by Donald Trump on February 2, 2026, as a comprehensive initiative led by the Chairman of the Export-Import Bank of the United States. The program represents one of the most ambitious critical minerals security projects undertaken by the federal government in recent history.
Under this initiative, EXIM approved a substantial $10 billion loan for the project, marking one of the largest financial commitments in the federal agency’s history. The Reko Diq investment forms a crucial component of this broader strategy to establish American influence in the global critical minerals market.
EXIM’s Critical Minerals Portfolio
In the past year, the Export-Import Bank of the United States issued $14.8 billion in Letters of Interest for critical minerals projects during the second Trump Administration. This aggressive financing approach demonstrates the administration’s commitment to securing strategic mineral resources essential for advanced manufacturing, defense applications, and emerging technologies.
For the critical minerals portfolio, EXIM has authorized several significant transactions across different locations. The $1.3 billion Reko Diq investment in Pakistan represents the international component of this strategy, while domestic investments span multiple states including Pennsylvania, Tennessee, New York, and Virginia.
Other Project Vault Investments
Beyond the Reko Diq investment, EXIM has approved funding for various domestic projects. These include $27.4 million for titanium, nickel, and advanced metal powders processing in Pennsylvania, demonstrating the breadth of materials covered under Project Vault.
Additional allocations comprise $23.5 million for advanced materials and critical metals processing in Tennessee, $15.9 million for zinc mining and production in New York, and $11.1 million for titanium processing and manufacturing in Virginia. Among this comprehensive list of investments, Pakistan remains the only non-US beneficiary, underscoring the unique status of the Reko Diq investment.
Significance of Reko Diq Mine
The Reko Diq mine in Balochistan, Pakistan, represents one of the world’s largest copper and gold reserves, making the Reko Diq investment strategically vital for global mineral security. The site is estimated to contain approximately 5.9 billion tonnes of ore grading 0.41% copper, along with gold reserves amounting to 41.5 million ounces.
These substantial reserves position the Reko Diq investment as a game-changing development in the global critical minerals landscape. The mine’s vast resources could significantly impact international copper and gold markets while providing Pakistan with substantial economic benefits through foreign investment and mineral exports.
Geological and Strategic Location
The Reko Diq area forms part of the Chagai volcanic chain of mountains, which extends across Balochistan between the Quetta-Taftan Line railway and the Afghanistan border. This geological formation represents one of many eroded remnant volcanic centers in the region, creating ideal conditions for mineral deposits.
The strategic location of the Reko Diq investment site also carries geopolitical significance, positioned in a region where multiple international interests converge. The US commitment to this project signals a broader strategy to maintain influence in South Asia’s resource-rich territories.
Historical Legal Disputes
The Reko Diq mine has a complex history that adds context to the current Reko Diq investment announcement. In 2011, the site became the center of a major legal dispute between Pakistan and Tethyan Copper Company, a joint venture between Chile’s Antofagasta and Canada’s Barrick Gold.
The case focused on allegations of breach of the Australia-Pakistan Bilateral Investment Treaty and illegal denial of mining rights to the company. This contentious history makes the current US investment even more significant, as it represents a new chapter in the mine’s development and potentially more stable international partnership arrangements.
Implications for Global Markets
The Reko Diq investment aims to reshape the global market for critical minerals and rare earths, according to the State Department’s announcement. This objective aligns with broader US foreign policy goals of diversifying mineral supply chains and reducing reliance on dominant suppliers in the critical minerals sector.
The $1.3 billion commitment represents a substantial vote of confidence in Pakistan’s mining sector and could encourage additional international investment in the country’s natural resources. The Reko Diq investment may serve as a catalyst for broader economic cooperation between the United States and Pakistan, extending beyond the minerals sector into other areas of mutual interest and development.
