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Ivanhoe Mines (TSX: IVN) has signed a memorandum of understanding (MoU) with Pakistan’s Mari Energies (PSX: MARI) to pursue mineral exploration opportunities, marking the Canadian miner’s entry into South Asia as it seeks to expand beyond its major operations in southern Africa.
Chairman Robert Friedland announced the agreement Thursday on the sidelines of the Pakistan Minerals Investment Forum. He said Ivanhoe was in the early stages of establishing a local office and expects to sign another agreement Friday. Mari Energies’ mining subsidiary, Mari Minerals, has several exploration projects targeting copper and gold in Pakistan.
“We’re forming equal partnerships,” Friedland told reporters when asked about the MoU’s structure and timeline. He said the company is seeking to bring international expertise to Pakistan to accelerate mineral discoveries.
While Friedland indicated that Ivanhoe intends to pursue equal partnerships in Pakistan, he did not confirm whether the agreement with Mari Energies would follow a 50-50 ownership structure. The companies have not disclosed financial terms, specific exploration commitments or a timetable for a definitive agreement.
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The move gives Ivanhoe Mines a foothold in a largely underexplored mineral jurisdiction as Pakistan seeks foreign capital and technical expertise to develop its copper and gold resources. Security concerns and infrastructure challenges remain significant obstacles to attracting international investment.
Building partnerships
Friedland said Ivanhoe intends to draw on its experience in Mongolia, the Democratic Republic of Congo and Saudi Arabia as it establishes a presence in Pakistan.
The company already has a 50-50 exploration partnership with Saudi Arabia’s state-controlled mining company, Ma’aden, providing a potential model for its Pakistani ventures.
While Friedland indicated that Ivanhoe is pursuing equal partnerships in Pakistan, he did not disclose the MoU’s financial terms, specific exploration targets or a timetable for moving toward a definitive agreement.
The Canadian mining entrepreneur told MINING.COM that Pakistan’s copper and gold potential is supported by a vast mineralized geological belt extending from Turkey and Iran through Afghanistan and Pakistan into western China and Mongolia.
“Pakistan is profoundly unexplored,” Friedland said in an exclusive interview Thursday, pointing to advances in geophysical surveying, remote sensing and artificial intelligence that could help identify deposits more quickly than traditional exploration methods.
He said the country sits along a vast mineralized geological belt extending from Turkey and Iran through Afghanistan and Pakistan into western China and Mongolia. The region hosts major copper and gold systems, but much of its exploration potential remains untested.
Friedland also stressed that successful mining development depends on local communities sharing directly in the economic benefits, including employment, education and infrastructure improvements.
Drawing on Ivanhoe’s experience in Africa, he said community participation is essential to securing long-term support for mining operations and avoiding disputes that can disrupt projects.
Investment challenges
Pakistan has been courting foreign mining companies to help unlock its mineral wealth, including plans announced last year to offer concessions to US investors as part of broader tariff negotiations with Washington.
The country hosts major copper and gold deposits, including Reko Diq in Balochistan, one of the world’s largest undeveloped copper-gold projects.
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However, the investment push faces significant obstacles. Earlier this year, Barrick Mining (TSX: ABX) (NYSE: B) extended its review of Reko Diq amid escalating security concerns in Pakistan and the Middle East, underscoring the risks facing foreign companies operating in the region.
Developing new mines will also require substantial investment in transport infrastructure, energy and skilled labour. Friedland said lessons from Ivanhoe’s Kamoa-Kakula copper complex in the DRC demonstrate the importance of reliable rail and port connections to make large-scale mining competitive.