ISLAMABAD: Barrick Gold Corporation and Japan’s Komatsu have signed a $440 million deal to supply mining equipment for the Reko Diq project in Pakistan’s mineral-rich Balochistan province. Komatsu also plans to set up a local subsidiary to support the operations, the company announced on Wednesday.
Reko Diq is among the world’s largest untapped copper and gold reserves in Balochistan. The site will help Pakistan boost exports, attract foreign investment, and support its long-term industrial needs. Its vast copper reserves are also vital for the global shift to clean energy.
Barrick owns 50 percent of the project. Pakistan’s federal and Balochistan governments each hold 25 percent. Construction will begin in 2025. The first production is expected in 2028.
“This project is a long-term investment in Pakistan’s mining future,” said Mark Bristow, Barrick’s President and CEO. “Our deal with Komatsu is key to that vision. Komatsu’s equipment has proven reliable across our global operations.”
This is Komatsu’s first major equipment deal in Pakistan. The five-year agreement strengthens its global partnership with Barrick.
Komatsu will create a new local entity — Komatsu Pakistan Mining (SMC-Private) Limited — to provide technical and equipment support at Reko Diq. The company also plans to invest more in its regional headquarters in Dubai to manage operations across the region.
The deal includes top-tier mining equipment made in the U.S. and Europe. This includes:
- 980E-5 haul trucks from Illinois
- P&H electric rope shovels from Wisconsin
- PC7000-11 excavators from Germany
- WE2350-2 electric wheel loaders from Texas
“This project is large and complex. It needs reliable, high-performance machines,” said Peter Salditt, President of Komatsu’s Mining Business Division. “Our haul trucks and shovels are ready to meet that challenge.”
Also Read: Reko Diq to add 1% to Pakistan’s GDP annually
Komatsu has worked with Barrick before. Their machines operate at Barrick’s Lumwana mine in Zambia and at Nevada Gold Mines in the U.S. In October 2023, the companies signed a global agreement to deepen cooperation across several sites.
Earlier this month, the International Finance Corporation and the World Bank approved a $700 million concessional loan for the Reko Diq project. This approval is expected to trigger $2.5 billion in private sector investment. The Reko Diq project is jointly owned by Barrick Gold, the federal government, and the Balochistan government.
