By Staff Reporter
KARACHI: Komatsu Ltd, the Japanese heavy machinery titan, will invest $100 million in a mining equipment maintenance hub in Pakistan and has clinched a $440 million deal with Barrick Gold Corp. to supply the Reko Diq mine, underscoring optimism about the country’s mining prospects, Nikkei Asia reported.
The investment, centered in Karachi—Pakistan’s financial nerve center—marks a significant expansion for Komatsu, which is already active in the country through a software development center.
By year-end, Komatsu plans to launch Komatsu Pakistan Mining, a new entity tasked with supporting the nation’s burgeoning mining industry.
The company is earmarking $100 million to build cutting-edge facilities for inspecting and repairing mining machinery, a critical backbone for large-scale operations. Over time, the hub is expected to employ about 500 engineers and operators, bolstering local expertise and job creation.
The push comes alongside a $440 million contract with Canada’s Barrick Gold Corp., inked Wednesday, to supply equipment for the Reko Diq gold mine in southwestern Pakistan, one of the world’s largest underdeveloped copper-gold deposits. The deal, spanning the first five years from fiscal 2026, is Komatsu’s biggest mining equipment placement in its Middle East territory yet.
“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 a statement.
To underpin its commitment to Reko Diq, Komatsu will establish KOMATSU PAKISTAN MINING (SMC-PRIVATE) LIMITED, a dedicated unit focused on delivering service and technical know-how at the mine. The company is also funneling additional funds into Komatsu Middle East FZE, its Dubai-based regional headquarters, to expand its equipment presence across the region.
The Reko Diq project, a 50-50 joint venture between Barrick Gold and the governments of Pakistan and Balochistan province, is a cornerstone of Islamabad’s economic ambitions. Once fully operational, the mine is poised to unlock vast copper and gold reserves, driving revenue, infrastructure growth, and employment in a country eager to capitalise on its natural wealth.
Komatsu’s deepening ties with Pakistan build on its existing footprint, where it runs a software development center. The new maintenance hub and Barrick contract position the company to ride the wave of Pakistan’s mining sector, which is gaining traction as global players eye its untapped potential. For Komatsu, the investments reflect a broader strategy to anchor itself in emerging markets with high-growth prospects.
The development of Reko Diq, in particular, is a game-changer. With its massive reserves, the mine could transform Pakistan’s economy, lifting export earnings and spurring development in the restive Balochistan region. For Barrick and Komatsu, the partnership locks in a reliable supply chain for a project that demands top-tier equipment and support.
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