ISLAMABAD: Barrick Gold Corporation and Japan’s Komatsu have finalized a $440 million agreement to supply mining equipment to Pakistan’s Reko Diq copper-gold project, with Komatsu also announcing plans to establish a local subsidiary to support operations, the company said on Wednesday.

Reko Diq is one of the world’s largest undeveloped copper and gold deposits, located in Pakistan’s mineral-rich Balochistan province near the volatile border with Iran and Afghanistan. The site is expected to play a key role in boosting Pakistan’s exports, attracting foreign investment, and supporting the country’s long-term energy and industrial needs through its vast copper reserves, which are critical for the global energy transition.

Reko Diq is jointly owned by Barrick (50 percent), Pakistan’s federal government (25 percent), and the Balochistan provincial government (25 percent). Construction is scheduled to begin in 2025, with first production targeted for 2028.

“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,” Mark Bristow, President and CEO of Barrick, was quoted as saying in the Komatsu statement. 

“Komatsu equipment has proven its performance and reliability at our operations worldwide.”

Komatsu said the five-year deal marked its first major equipment placement in Pakistan and a deepening partnership with Barrick.

To support the deployment, Komatsu will establish Komatsu Pakistan Mining (SMC-Private) Limited, a dedicated entity for technical services and equipment support at Reko Diq. The firm also plans additional investment in its regional headquarters in Dubai to manage an expanded footprint in the region.

The deal includes the delivery of ultra-class mining equipment manufactured in the United States and Europe, including 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 scale and complexity of this project demands proven, high-performance equipment,” said Peter Salditt, President of Komatsu’s Mining Business Division.

“We are confident our ultra-class haul trucks, electric rope shovels, and other mining machines will meet the challenge.”

Komatsu said the partnership builds on previous equipment deployments at Barrick’s Lumwana mine in Zambia and its Nevada Gold Mines joint venture in the United States. The two companies signed a global framework agreement in October 2023 to strengthen cooperation across multiple sites.