By Staff Reporter
KARACHI: Barrick Gold Corp., the Canadian mining giant, signed a $440 million deal with Japan’s Komatsu Ltd. for heavy mining equipment to develop Pakistan’s Reko Diq copper-gold project, one of the world’s largest undeveloped deposits.
The five-year deal, with deliveries starting in 2026, includes Komatsu’s ultra-class 980E-5 haul trucks, P&H 4100XPC AC electric rope shovels, PC7000-11 mining excavators, and WE2350-2 electric wheel loaders, according to a statement from Komatsu.
The agreement represents Komatsu’s first major mining equipment contract in its Middle East territory, cementing a deepening partnership with Barrick.
“The Reko Diq project represents a long-term investment in our future and that of mining in Pakistan, and our partnership with Komatsu is an important part of that vision,” Barrick President and Chief Executive Officer Mark Bristow said in a statement.
The Reko Diq project, located in Pakistan’s Balochistan province, is poised to become a cornerstone of the country’s economic development. Operated as a joint venture led by Barrick, the mine is expected to rank among the world’s top copper and gold producers once fully operational, tapping into surging global demand for copper, a critical metal for renewable energy and electric vehicles.
Strategic Expansion
Komatsu, one of the world’s largest manufacturers of construction and mining equipment, is betting big on the project’s success. The company plans to establish a new subsidiary, Komatsu Pakistan Mining (SMC-Private) Limited, to provide dedicated service and technical support for Reko Diq’s operations. It will also channel additional investments into its regional headquarters, Komatsu Middle East FZE in Dubai, to bolster its equipment presence across the region.
“Valued at $440 million over the first five years, the deal marks Komatsu’s first major mining equipment placement in its Middle East territory and underscores the strengthening partnership between the two companies,” Komatsu said in its statement.
Peter Salditt, president of Komatsu’s Mining Business Division, emphasized the strategic importance of the contract. “Barrick is an important global partner for Komatsu, and we are excited to expand our relationship to support the development of Reko Diq,” he said. “The scale and complexity of this project demand proven, high-performance equipment, and we are confident our ultra-class haul trucks, electric rope shovels, and other mining machines will meet the challenge.”
Reko Diq is expected to generate thousands of jobs and significant foreign investment, providing a much-needed boost to the nation’s economy.
Barrick’s commitment to Reko Diq follows years of legal and political hurdles that stalled the project. A 2022 agreement between Barrick, its partner Antofagasta Plc, and the Pakistani government resolved a long-running dispute, paving the way for development to resume. The joint venture, in which Barrick holds a 50% stake, is now advancing toward production, with feasibility studies underway.
For Komatsu, the deal reinforces its position in the global mining equipment market, where it competes with rivals like Caterpillar Inc. The company’s investment in Pakistan and the Middle East signals confidence in the region’s mining potential, particularly as global miners race to secure copper supplies amid tightening markets.
“We look forward to continuing to work alongside Barrick to drive productivity and innovation in mining,” Salditt said.
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