Barrick and Komatsu Finalise $440M Equipment Contract for Reko Diq

Barrick and Komatsu's $440M Equipment Contract: A Game-Changer for Reko Diq Project

The mining world witnessed a landmark agreement in June 2025 as Barrick Mining Corporation and Komatsu finalized a $440 million equipment contract that signals confidence in one of the world's most ambitious mining ventures. This deal will supply cutting-edge mining equipment to the Reko Diq copper-gold project in Pakistan, with deliveries scheduled to commence in 2026.

"The Reko Diq project represents a long-term investment in our future and that of mining in Pakistan," explained Mark Bristow, Barrick President and CEO. "Komatsu equipment has proven its performance and reliability at our operations worldwide, making them the logical partner for this transformative project."

The agreement follows Barrick's strategic approach of establishing long-term equipment partnerships that ensure operational consistency across its global portfolio of mines. Industry analysts note this contract's significance extends beyond its monetary value, representing one of the largest single equipment orders for Pakistan's developing mining sector.

Why is the Reko Diq Project Significant?

Strategic Importance of the Copper-Gold Development

The Reko Diq project stands as one of the world's most significant greenfield mining developments, positioned in Pakistan's southwestern Balochistan province. With estimated reserves exceeding 12 million tonnes of copper and 21 million ounces of gold, this project represents a major resource addition to Barrick's global portfolio.

Peter Salditt, President of Komatsu's Mining Business Division, emphasized the project's magnitude: "The scale and complexity of this project demands proven, high-performance equipment that can withstand challenging conditions while delivering exceptional productivity."

The development arrives at a critical juncture in the global copper market, with demand projected to outstrip supply by 2030 due to electrification trends and renewable energy infrastructure requirements. Gold, meanwhile, continues to serve as a store of value during economic uncertainty, making this dual-resource project particularly valuable.

Economic Impact on Pakistan's Mining Sector

This landmark project marks a transformative investment in Pakistan's mining industry, potentially increasing the sector's contribution to national GDP from under 1% to an estimated 4-5% once fully operational. The equipment purchase alone represents the largest single mining technology investment in Pakistan's history.

The project is expected to create over 7,500 direct jobs during peak construction, with approximately 4,000 long-term positions during operations. Beyond direct employment, the economic multiplier effect will support thousands of additional jobs throughout Pakistan's supply chain and service sectors.

Local communities in Balochistan province stand to benefit significantly through infrastructure development, including improved road networks, water management systems, and potential power generation capacity that may extend beyond the mine's immediate needs.

What Equipment is Included in the Contract?

Ultra-Class Haul Trucks and Electric Rope Shovels

The centerpiece of the equipment package includes a fleet of 980E-5 ultra-class haul trucks manufactured in Peoria, Illinois. These behemoths boast 400-ton payload capacities and are engineered specifically for challenging mining environments, featuring:

• Fuel efficiency improvements of 5-7% compared to previous models
• GE dual-drive AC electric drive systems for enhanced power delivery
• Extended component life expectancy in high-dust conditions
• Integrated telemetry systems for real-time performance monitoring

Complementing these massive haulers are P&H 4100XPC AC electric rope shovels manufactured in Milwaukee, Wisconsin. These 135-ton giants will provide electric-powered material movement with digging forces exceeding 2.6 million pounds. Their emissions-free operation represents a significant environmental advantage over diesel alternatives, reducing the project's carbon footprint by an estimated 12,000 tonnes of CO₂ annually per shovel.

Advanced Excavators and Wheel Loaders

The contract also includes PC7000-11 mining excavators manufactured in Dusseldorf, Germany. These 700-ton machines feature:

• Intelligent Machine Control systems for precision digging
• Advanced hydraulics with 15% reduced power consumption
• Real-time payload measurement accurate within 1%
• Predictive maintenance diagnostics to minimize downtime

Perhaps most impressive are the WE2350-2 electric wheel loaders from Longview, Texas—the largest wheel loaders in the world. With 72-ton payload capacity and bucket sizes exceeding 40 cubic meters, these electric giants will handle high-volume material movement with 40% faster cycle times than comparable diesel-powered alternatives.

The equipment selection reflects Barrick's commitment to operational efficiency and mining sustainability practices, with a strategic mix of electric and traditional power systems optimized for the site's specific requirements.

How Will Komatsu Support Operations in Pakistan?

Establishment of Komatsu Pakistan Mining Limited

As part of its commitment to the project, Komatsu plans to establish Komatsu Pakistan Mining Limited, a dedicated entity that will provide specialized service and technical expertise at the Reko Diq site. This new subsidiary represents a significant investment in local infrastructure and support capabilities.

The company will construct a 15,000-square-meter maintenance facility adjacent to the mine site, housing specialized repair bays, component rebuild workshops, and parts warehousing. This facility will ultimately employ approximately 250 technicians and support staff, with 80% targeted to be Pakistani nationals following the initial training period.

"Our investment in Komatsu Pakistan Mining Limited ensures Barrick will have the resources needed to efficiently operate this world-class equipment in a challenging and remote environment," Komatsu's statement emphasized. The company has committed to an extensive training program, including sending key Pakistani personnel to Komatsu technical centers in Japan and the United States for specialized certification.

Regional Headquarters Enhancement

Additional investments will strengthen Komatsu Middle East FZE, the company's regional headquarters in Dubai, UAE. These enhancements include:

• Expanded parts inventory capabilities (70% increase in warehouse capacity)
• Enhanced technical support teams with specialized Reko Diq expertise
• Advanced simulator training facilities for operator development
• Dedicated logistics coordination for the Pakistan operation

The Dubai expansion creates a critical support hub that bridges Komatsu's global supply chain with the remote Reko Diq operation. Emergency parts can be deployed within 24 hours from Dubai to the mine site, while routine maintenance components will follow a scheduled replenishment cycle to ensure continuous operations.

This dual-support approach—combining on-site resources with robust regional backup—follows a model Komatsu successfully implemented at Barrick's Lumwana copper mine in Zambia, where equipment availability consistently exceeds 92%.

What Does This Deal Mean for Both Companies?

Expanding Strategic Partnership

This agreement builds upon a growing relationship between Barrick and Komatsu, following successful fleet acquisitions at Barrick's Lumwana copper mine in Zambia (approximately $180 million in equipment) and the Nevada Gold Mines complex in the United States (valued at over $210 million). The companies formalized their commitment through a global framework agreement in October 2023.

This framework establishes preferential terms for equipment purchases, standardized maintenance protocols, and collaborative technology development—creating efficiencies for both organizations. For Barrick, standardization across operations reduces training requirements and simplifies parts inventory management.

"Barrick is an important global partner with a clear vision for responsible mining development," noted Peter Salditt. "We look forward to continuing to work alongside Barrick as they develop world-class assets like Reko Diq."

Industry analysts suggest this deepening partnership signals potential for further collaboration on Barrick's future projects, potentially including developments in Saudi Arabia and across Africa.

Market Significance for Komatsu

The contract marks Komatsu's first major mining equipment placement in its Middle East territory, representing an important geographic expansion for the Japanese equipment manufacturer. This strategic positioning could open additional opportunities throughout the region, where mining investment opportunities are accelerating.

For Komatsu, which has historically competed with Caterpillar for dominance in the ultra-class mining equipment sector, the deal offers several advantages:

• Establishes a reference site in a new regional market
• Creates a showcase for its integrated mining solutions
• Demonstrates capability in remote and challenging environments
• Strengthens its position in copper mining as global demand increases

However, the expansion into Pakistan does present challenges, including supply chain complexities, regulatory navigation, and security considerations in Balochistan province. Komatsu's substantial investment in local infrastructure indicates confidence these challenges can be effectively managed.

How Does This Contract Support Sustainable Mining Operations?

Technological Advantages of Modern Equipment

The selected equipment incorporates advanced technologies that promote operational efficiency while reducing environmental impact. Key sustainability features include:

• Electric drive systems on haul trucks reduce fuel consumption by 7-10% compared to mechanical alternatives
• Regenerative braking on the 980E-5 trucks captures energy during downhill transport
• Computer-optimized loading cycles on excavators minimize energy waste
• Smart idle functions automatically reduce power during operational pauses
• Precision GPS-guided digging reduces over-excavation and waste

"Modern mining equipment isn't just about moving more material—it's about moving the right material more efficiently," explains mining technology expert Dr. Ahmed Hassan of the Pakistan Mineral Development Corporation. "Every percentage point of improved efficiency translates to reduced emissions and resource consumption."

The electric-powered equipment, including the P&H rope shovels and WE2350-2 wheel loaders, represents the most significant environmental advantage. These machines eliminate diesel emissions at the point of operation and reduce noise pollution by approximately 60% compared to conventional equipment.

Long-term Operational Benefits

High-performance equipment with intelligent data solutions enables more precise operations, potentially extending mine life through efficient resource extraction. The integrated data systems will allow Barrick to:

• Track material movement with tonnage accuracy exceeding 98%
• Optimize haul routes based on real-time conditions
• Identify maintenance needs before catastrophic failures
• Reduce energy consumption through operational analytics

These capabilities align with Barrick's published sustainability targets, which include reducing emissions intensity by 30% by 2030. The company has indicated that equipment selection for Reko Diq specifically evaluated carbon footprint as a decision criterion alongside traditional metrics like productivity and cost.

While the upfront investment in premium equipment is substantial, the operational efficiencies are expected to reduce the project's lifetime carbon intensity by approximately 15-20% compared to conventional mining operations of similar scale.

What Challenges Might the Project Face?

Operational Considerations in Pakistan

Operating in Pakistan presents unique logistical and operational challenges that both Barrick and Komatsu have addressed in their partnership structure. Key challenges include:

1. Infrastructure limitations – Balochistan's remote location requires significant infrastructure development, including:

   • Road upgrades to support ultra-heavy component transport
   • Reliable power supply (the site will require 100+ MW capacity)
   • Water management systems in a water-stressed region
   • Telecommunications infrastructure for equipment telemetry systems

2. Technical expertise – The sophisticated equipment requires specialized maintenance skills not widely available in Pakistan's emerging mining sector. Komatsu's training commitment includes:

   • Initial deployment of 35-40 expatriate specialists
   • Structured knowledge transfer to local workforce
   • Simulator-based training for operators
   • Certification programs for maintenance personnel

3. Security considerations – Balochistan has experienced periodic security challenges that require careful operational planning. Both companies have indicated comprehensive security protocols have been integrated into the operational design.

The establishment of a dedicated local service entity demonstrates recognition of these challenges and a long-term commitment to addressing them systematically.

Supply Chain and Maintenance Requirements

The diverse manufacturing origins of the equipment (USA, Germany) necessitate robust supply chain management to ensure timely delivery of parts and maintenance support to the remote mining location. Critical considerations include:

• Parts logistics – Critical components will be stocked on-site with 3-6 months inventory for vital systems, supported by the regional hub in Dubai
• Preventive maintenance – Digitally-scheduled maintenance programs will optimize component lifespans
• Technical documentation – All materials will be provided in multiple languages to support the multinational workforce
• Customs clearance – Special protocols established with Pakistani authorities to expedite critical parts

Barrick's experience operating in remote locations like Papua New Guinea's Porgera mine and Tanzania's North Mara operation has informed their approach to these challenges. Similarly, Komatsu has demonstrated success supporting equipment in challenging environments, including Mongolia's Oyu Tolgoi and Zambia's Copperbelt mines.

FAQ About the Barrick-Komatsu Agreement

When will equipment deliveries begin for the Reko Diq project?

Equipment deliveries are scheduled to begin in 2026, aligning with the project's development timeline. Initial components will arrive approximately 18 months before mining operations commence to allow for assembly and commissioning.

What types of mining equipment are included in the contract?

The contract includes 980E-5 ultra-class haul trucks, P&H 4100XPC AC electric rope shovels, PC7000-11 mining excavators, and WE2350-2 electric wheel loaders. This equipment represents Komatsu's most advanced mining technology portfolio.

How is Komatsu preparing to support operations in Pakistan?

Komatsu is establishing Komatsu Pakistan Mining Limited specifically to provide service and technical expertise at Reko Diq, while also enhancing its regional headquarters in Dubai. The company will invest approximately $30 million in facilities and training infrastructure to support the operation.

What is the significance of this deal for Pakistan's mining sector?

This represents one of the largest mining equipment investments in Pakistan, potentially catalyzing further development of the country's mining industry. The technological transfer associated with maintaining and operating this equipment will establish new capabilities within Pakistan's mining sector that could support future projects.

What maintenance intervals can be expected for this equipment?

The equipment is designed for maximum uptime with scheduled maintenance intervals optimized for the specific conditions at Reko Diq:

• Haul trucks: Major service every 500-600 operating hours
• Excavators: Critical systems inspection every 250 hours
• Rope shovels: Comprehensive maintenance monthly
• Wheel loaders: Drivetrain service every 1,000 hours

How will operator training be handled for this specialized equipment?

Komatsu will provide simulator-based training systems at the site, allowing operators to develop skills in a controlled environment before transitioning to actual equipment. Master trainers will be deployed from Komatsu's global operations, with the goal of developing local training capacity within 24 months.

Key Statistics and Equipment Specifications

Future Outlook for the Partnership

Potential for Additional Collaborations

The strengthening relationship between Barrick and Komatsu suggests significant potential for future equipment contracts at other Barrick operations globally. Their global framework agreement established in 2023 provides the foundation for expanded cooperation across Barrick's portfolio, which includes 16 operating mines across 13 countries.

Industry analysts note approximately 65% of Barrick's global fleet now consists of Komatsu equipment, up from 40% five years ago, indicating a clear strategic shift toward standardization. This standardization creates efficiencies in training, maintenance, and parts inventory management.

Possible future collaboration sites include:

• Barrick's exploration projects in Saudi Arabia's Arabian Shield region
• Potential mine life extensions at the Pueblo Viejo operation in Dominican Republic
• New developments in Barrick's growing African portfolio

The companies have also indicated interest in joint technology development initiatives, particularly in equipment automation and emissions reduction—areas where both organizations have established sustainability commitments.

Technology Integration Opportunities

As mining industry innovation continues to evolve, the partnership may extend to include advanced solutions that further optimize Reko Diq operations:

• Autonomous haulage – Komatsu's FrontRunner autonomous haulage system has logged over 4 billion tonnes of material moved at operations like Rio Tinto's Gudai-Darri iron ore mine in Australia. Similar technology could eventually be implemented at Reko Diq.

• Predictive analytics – Machine learning systems analyzing equipment sensor data can predict component failures before they occur, potentially reducing downtime by 30-40%.

• Remote operations – Centralized control rooms can allow operators to manage multiple pieces of equipment simultaneously, improving efficiency and safety.

• Electrification expansion – Future equipment replacements may include additional electric-powered units as battery technology continues advancing.

These technologies align with both companies' strategic directions. Barrick has publicly committed to digital transformation of its mining operations, while Komatsu has invested heavily in automation and [AI in mining technology](https://discoveryalert

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