Barrick Gold Signs 10-Year Agreement with Yokohama Rubber of Japan to Secure Tire Supply

Toronto-based Barrick Gold Corporation announced a 10-year agreement with Yokohama Rubber Co. Ltd. of Japan to secure the supply of potentially more than $200 million in tires. Under the agreement, Barrick will purchase approximately 1,300 off-the-road (OTR) tires a year beginning in 2009. To meet this demand, Yokohama will embark on a major expansion of the Onomichi plant located in Hiroshima. The US$50 million expansion includes a new building, production line, and related equipment, and will be primarily funded by a $35 million loan from Barrick. Start up is scheduled for late in the fourth quarter of 2008. The contract covers five sizes of bias-ply, giant OTR tires, including loader and haul truck sizes up to the 40.00-57 profile. Barrick mines will receive delivery directly from the Onomichi plant and direct-from-manufacturer pricing for the next decade.