TORONTO - BARRICK GOLD has agreed to purchase approximately 1,300 off-road tires per year beginning in 2009 from YOKOHAMA RUBBER CO. of Japan to secure the mining company's supply of tires for the next 10 years. The deal is worth more than $200 million.
To meet this demand, Yokohama will embark on the second major expansion in two years of the Onomichi plant located in Hiroshima Prefecture, Japan. The US$50-million project includes a new building, production line and related equipment, and will be primarily funded by a $35-million loan from Barrick. Startup is scheduled for late in the 4Q 2008.
The contract covers five sizes of bias-ply tires, including loader and haul truck sizes up to the 40.00-57 profile. In addition, Yokohama will provide technical assistance with each Barrick site to ensure that the proper compound, tread pattern, and other characteristics are optimized for the operation. Barrick mines will receive delivery directly from the Onomichi plant and direct-from-manufacturer pricing for the next decade.
Download the Yokohama Off-the-Road Tires Handbook at www.Yokohama.Tire.com.