Komatsu Wins Big Orders for Mining Equipment from Gold Mine in Mexico and Coal Mine in China, Totaling 109 Units

Komatsu Ltd. (President and CEO: Masahiro Sakane) ("Komatsu") has won orders for 64 and 45 units of large mining equipment from a gold mine in Mexico and a coal mine in China, respectively. The total amount of these contracts will reach US$280 million (Approx. ¥32.2 billion). An outline of each contract is described below.

Komatsu Latin-America Corp., Komatsu's regional headquarter subsidiary for the Latin American business, won an order for 64 units worth about US$160 million (¥18.4 billion) of large mining equipment from Minera Peñasquito S.A.DE C.V., a Mexican subsidiary of Goldcorp Inc., a premier senior intermediate gold producer.
Komatsu will deliver 930E super-large dump trucks and various other equipment to the customer's Peñasquito property, one of the largest undeveloped precious metal deposits in Mexico.
With the first equipment shipment scheduled for February 2007, Komatsu plans to deliver a total of 31 units worth US$80 million (approx. ¥9.2 billion) by the end of the 2007 and is scheduled to complete the total delivery by 2011.
Furthermore, Komatsu is looking forward to receiving an order for a full repair-and-maintenance service contract in which Road Machinery Mexico, a distributor for the Komatsu Group, will provide the service.

Goldcorp is North America's third largest gold producer and is one of the world's lowest cost and fastest growing multi-million ounce gold producers with mining operations throughout the Americas and Australia. Revenues in 2005 reached US$896.4 million, with the record net earnings of US$285.7 million (US$0.91 per share).

In June 2006, Goldcorp announced that it had doubled the estimated amount of gold reserves from 4.93 to 9.98 million ounces at its Penasquito property. About the same time, the company also disclosed that it had revised its silver, lead and zinc reserves by expanding 86% to 575 million ounces of silver and by doubling lead to 1.67 million tons and zinc to 3.62 million tons.
The Peñasquito property is one of the largest undeveloped precious metals deposits in the Americas.

Komatsu and Toyota Tsusho Corporation (President: Junzo Shimizu) have won an order for 45 units of the 930E super-large dump truck (max. payload: 290 tons), worth US$120 million (approx. ¥18.4 billion), from Pingshuo Coal Industry Co., Ltd. (President: Liu Ze Min), a member company of China National Coal Group Corp. (President: Jing Tian Liang) ("China Coal") which is one of the two major state-owned coal producers of China. The current order represents the second one from Pingshuo Coal Industry Co., Ltd., following the first order contract for equipment, worth about ¥10 billion, agreed upon on January 19, 2006.
With annual production of 2.1 billion tons (in 2005), China is the world's largest producer of coal. Against the backdrop of strong economic growth for the recent years, however, it has become urgent for China to produce more coal. With present plans calling for annual expansion of coal production by 100 million tons annually for 2010, the Chinese government is promoting large-scale, efficient mining, including the consolidation of smaller-scale mines. Komatsu projects that capital investments in mining should continue into the future.

Since its establishment as a national corporation in 1982, China Coal has played an exclusive role of exporting China's coal. China Coal remains one of the largest coal producers in China today.
President : Jing Tian Liang
Sales : CNY 50 billion (in 2005)
No. of employees : 56,000
Coal production capacity : 71,860,000 tons/year (in 2005)

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