Key points
- Reko Diq is a major copper-gold deposit in Pakistan
- Construction begins 2025, with production expected in 2028
- Deal includes advanced mining equipment from US and Europe
ISLAMABAD: Barrick Gold Corporation and Japan’s Komatsu have finalised a $440 million agreement to supply mining machinery for Pakistan’s Reko Diq copper-gold project, Komatsu announced on Wednesday.
As part of the deal, Komatsu will also establish a local subsidiary to support operations on the ground, according to Arab News.
Reko Diq, located in the mineral-rich Balochistan province near Pakistan’s borders with Iran and Afghanistan, is among the world’s largest undeveloped copper and gold deposits.
It is expected to play a significant role in increasing Pakistan’s exports, attracting foreign investment, and supporting the country’s long-term energy and industrial needs. The site’s substantial copper reserves are also vital for the global energy transition.
Ownership of project
Ownership of the project is shared between Barrick (50 per cent), the Government of Pakistan (25 per cent), and the Balochistan provincial government (25 per cent). Construction is slated to begin in 2025, with first production anticipated in 2028.
“The Reko Diq project is a long-term investment in our future and in the future of mining in Pakistan. Our partnership with Komatsu is a key part of that vision,” said Mark Bristow, President and CEO of Barrick, in a statement issued by Komatsu.
Komatsu noted that this five-year agreement represents its first major equipment supply initiative in Pakistan and marks a deepening of its partnership with Barrick.
To support its involvement, Komatsu will launch Komatsu Pakistan Mining (SMC-Private) Limited—a dedicated entity to provide technical services and equipment support at the Reko Diq site. The company also intends to invest further in its regional headquarters in Dubai to manage its growing presence in the region.
Ultra-class mining equipment
The deal includes the delivery of ultra-class mining equipment manufactured in the United States and Europe. This includes 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.
“The size and complexity of this project require reliable, high-performance machinery,” said Peter Salditt, President of Komatsu’s Mining Business Division. “We are confident our ultra-class haul trucks, rope shovels, and other equipment are up to the task.”
The partnership builds on previous collaborations between the two companies, including equipment deployments at Barrick’s Lumwana mine in Zambia and its Nevada Gold Mines joint venture in the United States. In October 2023, Barrick and Komatsu signed a global framework agreement to enhance cooperation across multiple sites.
