'Project Vault': Why Balochistan's Reko Diq Is The Only International Entry In US Critical Minerals Initiative

Last Updated:February 05, 2026, 23:55 IST

While Project Vault is primarily focused on internal stockpiling within US, it includes a $1.3 billion investment in Pakistan's Reko Diq mines, located in the Balochistan province

The United States has unveiled ‘Project Vault’, a $12 billion initiative to establish its first-ever strategic critical minerals reserve, in which Pakistan will have a major stake.

The ambitious project was announced by the Trump administration on Wednesday (February 4), and will operate under the Export-Import Bank (EXIM) with the aim to stockpile essential minerals for the civilian economy. The US has planned for this to effectively insulate domestic commercial industries from the volatile effects of global supply shocks.

WHAT IS PAKISTAN’S ROLE IN IT?

While Project Vault is primarily focused on internal stockpiling within the US, it includes a landmark $1.3 billion investment in Pakistan’s Reko Diq mines, which are located in the Balochistan province, and marks the only international project funded under the initiative.

Reko Diq is home to some of the world’s largest undeveloped copper and gold deposits in the rugged terrain of the southwestern province of Balochistan. Industry estimates suggest the area contains approximately 5.9 billion tonnes of ore, including 41.5 million ounces of gold.

The US State Department has indicated that this move is intended to “reshape the global market for critical minerals and rare earths", as Washington pivots towards a more aggressive foreign policy of resource acquisition — cue in its intense interest in mineral-rich Greenland. 

WHY DOES THE US WANT THIS RESERVE?

This strategic manoeuvre is a direct challenge to China’s long-standing dominance over the rare earth elements essential for modern technology and national defence.

China currently controls more than 90 percent of the global output of refined rare earths, which are vital components in everything from iPhones and electric vehicles to advanced semiconductors and AI development. The urgency of the project is underscored by a global “copper rush" as nations race to electrify and digitise.

Experts have warned that the world is facing a “structural shortage" of copper, whose global demand is projected to surge from 30 million tonnes annually to 50 million tonnes by 2050.

“Copper will fuel every part of our modern economy, and we’re at a structural shortage," Dr Gracelin Baskaran, the director of the Critical Minerals Security Program at the Center for Strategic and International Studies, told CNN.

WHAT DOES THIS MEAN FOR BALOCHISTAN?

Pakistan’s largest province, Balochistan, is ridden with decades of insurgency and is, at present, on the offensive against the Pakistani government.

Reko Diq seems to be right in the middle of all the violence. The security risks have been exacerbated by the US withdrawal from Afghanistan in 2021, which left behind a vast “cornucopia" of weaponry.

Reports from the region indicate that US-made M-16s, M-4s, and sniper rifles — stamped as property of the US government — are now being used by militants to turbocharge insurgencies against Pakistani forces.

In fact, defence minister Khawaja Asif referred to this during his address at the National Assembly. He admitted that the Pakistani security forces were practically “handicapped" in the face of Baloch rebels, who were equipped with advanced rifles and night-vision devices that are not even standard military issue for the country’s army.

Despite all of this, the partnership between Washington and Islamabad appears to be strengthening. Following a visit to the White House, where Pakistani leaders presented a chest of rare earths dug from their soil, Trump praised the cooperation even referring to the Pakistani Army chief as his “favourite field marshal".

CNN reported that for Pakistan, which has survived 24 IMF bailouts since 1958, the Reko Diq investment represents a potential “cash bonanza". While DG ISPR Lt General Ahmed Sharif Choudhry told reporters that the US “has a lot to offer for the people and stability and prosperity of Pakistan", the reality seems to be far from it.

(With agency inputs)

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