Komatsu, a Japanese heavy machinery manufacturer, is set to invest millions of dollars in a maintenance hub for mining equipment in Pakistan, reported Nikkei Asia.
According to the report, Komatsu Pakistan Mining is expected to be established in Karachi, the financial hub of Pakistan, by the end of the year.
It further added that Komatsu, which already runs a software development centre in Pakistan, will spend $100 million on facilities for inspecting and repairing mining machinery.
鈥淚t will also eventually build up the staff to roughly 500 engineers and operators,鈥 read the report.
On Wednesday, Komatsu informed that it has inked a $440 million contract with Canada鈥檚 Barrick Mining to develop the Reko Diq gold mine in southwestern Pakistan, to supply equipment to the project in the coming years, starting in fiscal 2026.
鈥淰alued at $440 million over the first five years, the deal marks Komatsu鈥檚 first major mining equipment placement in its Middle East territory and underscores the strengthening partnership between the two companies,鈥 Komatsu said in a statement.
It also shared that as part of its commitment to supporting Reko Diq鈥檚 operations, Komatsu intends 鈥渢o establish KOMATSU PAKISTAN MINING (SMC-PRIVATE) LIMITED, a new entity dedicated to providing service and technical expertise at Reko Diq鈥.
鈥淎dditional investments will also be made to Komatsu Middle East FZE, the regional headquarters in Dubai, UAE, to support an expanded equipment footprint in the region,鈥 it added.
Barrick Gold owns a 50% stake in the Reko Diq mine and the governments of Pakistan and the province of Balochistan own the other 50%.
The mines are considered one of the world鈥檚 largest underdeveloped copper-gold areas, and their development is expected to have a significant impact on Pakistan鈥檚 economy.