Japan's Komatsu to establish $100mn maintenance facility in Karachi: report
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.
'It will also eventually build up the staff to roughly 500 engineers and operators,' read the report.
On Wednesday, Komatsu informed that it has inked a $440 million contract with Canada's 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.
'Valued at $440 million over the first five years, the deal marks Komatsu's first major mining equipment placement in its Middle East territory and underscores the strengthening partnership between the two companies,' Komatsu said in a statement.
It also shared that as part of its commitment to supporting Reko Diq's operations, Komatsu intends 'to establish KOMATSU PAKISTAN MINING (SMC-PRIVATE) LIMITED, a new entity dedicated to providing service and technical expertise at Reko Diq'.
'Additional 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,' 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's largest underdeveloped copper-gold areas, and their development is expected to have a significant impact on Pakistan's economy.
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