Japanese Firm Signs $440M Deal for Reko Diq Mining Project

Japan’s Komatsu has entered into a $440 million agreement with Barrick Gold for the Reko Diq project, marking a major step in the development of one of Pakistan’s largest copper-gold mining ventures. Komatsu will also set up its first local subsidiary, Komatsu Pakistan Mining (SMC-Private) Limited, to offer on-site technical services and equipment support.

The Komatsu Reko Diq agreement stems from a global framework deal signed between Komatsu and Barrick in October 2023. It extends their cooperation beyond existing partnerships at Barrick’s sites in the U.S. and Zambia.

Under the agreement, Komatsu will construct a $100 million maintenance hub and deliver ultra-class mining equipment over five years. The shipment will include 980E-5 haul trucks manufactured in Illinois, electric rope shovels produced in Wisconsin, PC7000-11 excavators from Germany, and WE2350-2 loaders made in Texas.

Strategic Importance of the Reko Diq Project

The Reko Diq mine, located in Balochistan near the Iran-Afghanistan border, is co-owned by Barrick (50%), the federal government (25%), and the Balochistan government (25%). It is considered one of the largest undeveloped copper-gold deposits in the world.

Construction on the project is set to begin in 2025, with production expected by 2028. The Komatsu-Barrick deal is viewed as a significant boost to Pakistan’s mining infrastructure and technical capabilities, with Komatsu’s entry into the country adding further credibility and investment confidence.

With the Komatsu Reko Diq agreement, Pakistan moves a step closer to unlocking the full potential of its mineral resources through global partnerships and high-grade equipment deployment.