ISLAMABAD: Barrick Gold Corporation and Japan’s Komatsu have signed a $440 million agreement to supply mining equipment for Pakistan’s Reko Diq copper-gold project. As part of the deal, Komatsu will also set up a local subsidiary, Komatsu Pakistan Mining (SMC-Private) Limited, to support operations, the company announced on Wednesday.
The agreement includes the delivery of high-performance mining equipment manufactured in the US and Europe, such as Komatsu 980E-5 haul trucks from Illinois, P&H electric rope shovels from Wisconsin, PC7000-11 excavators from Germany, and WE2350-2 electric wheel loaders from Texas.
Reko Diq, located in Balochistan province near the borders of Iran and Afghanistan, is one of the world’s largest untapped copper and gold deposits. The project is expected to significantly boost Pakistan’s exports, attract foreign investment, and contribute to the country’s energy and industrial sectors through its vast copper reserves, which are crucial for global energy transition efforts.
The Reko Diq project is a joint venture, with Barrick holding 50%, the federal government of Pakistan owning 25%, and the Balochistan provincial government holding the remaining 25%. Construction is set to begin in 2025, with production expected to start by 2028.
Mark Bristow, President and CEO of Barrick, highlighted the long-term investment potential of the project, noting that Komatsu’s equipment has proven reliable in global operations.
Komatsu’s partnership with Barrick builds on previous collaborations, including equipment deployments at Barrick’s Lumwana mine in Zambia and Nevada Gold Mines in the United States. In October 2023, the two companies signed a global framework agreement to enhance cooperation across multiple sites.
