Pakistan and Australia are discussing the possibility of an Intergovernmental Agreement (IGA) to establish structured, long-term collaboration in Pakistan’s mining and mineral sector, it has emerged.
As per the details, the IGA proposal came from Petroleum Minister Ali Pervaiz Malik during his meeting with Australia’s new High Commissioner (AHC) to Pakistan, Timothy Kane, on Tuesday.
The agreement would build on a July 2025 proposal made by former AHC Neil Hawkins, which envisioned collaboration between Australian universities, mining companies and Pakistani institutions.
The initiative aimed to provide specialised training in modern mining techniques, strengthen local expertise and support the development of Pakistan’s mining sector.
According to an official statement, the petroleum minister and the new AHC discussed avenues for enhanced bilateral cooperation in the mining and gemstone sectors.
Malik welcomed the strong interest of Australian companies in Pakistan’s mining industry and highlighted the country’s vast untapped mineral potential, particularly in the Tethyan Belt.
“He proposed the possibility of an IGA between Pakistan and Australia to promote structured and long-term cooperation in the mining sector,” the statement said.
Australia has been active in Pakistan’s mineral and natural resources sector across almost all resource-rich regions, including Balochistan, Gilgit-Baltistan (GB) and Azad Kashmir.
The engagement has primarily focused on research and exploration, identifying critical reserves in copper, gold, coal, zinc and other precious minerals, including oil and gas.
The joint venture between Australian BHP Billiton and the Geological Survey of Pakistan led to the discovery of the multi-billion-dollar Reko Diq copper-gold deposits, which are now being developed for commercial production by Canada’s Barrick Gold Corporation. BHP withdrew from Pakistan almost two decades ago as part of its global restructuring.
Malik briefed the new envoy on government efforts to develop and formalise the gemstones sector, highlighting its potential for value addition, exports and job creation.
The AHC noted that Australian companies are already actively involved in the Reko Diq project and that additional firms had expressed keen interest in participating.
He said Australian firms would be encouraged to join the Pakistan Minerals Investment Forum (PMIF) and expressed hope for a strong Australian presence at the event.
The diplomat also highlighted the growing global importance of copper and gold for the energy transition, noting that Pakistan’s mining sector had attracted considerable international attention.
He expressed optimism about collaboration in the gemstones sector through knowledge sharing, training and technical assistance, the statement added.