Name of the Project
Lumwana superpit expansion.

Location
Zambia.

Project Owner/s
Barrick Gold.

Project Description
The expansion project will unlock the potential to transform the Lumwana mine into a long-life, high-yielding, top-25 copper producer and a Tier 1 copper mine capable of contending with the volatility of copper demand cycles, Barrick CEO Mark Bristow said in September 2024.

The expansion entails doubling throughput by twinning the existing process circuit and then significantly increasing mining volumes. 

Plant throughput will increase from the current 27-million tonnes to 52-million tonnes, doubling the mine’s copper production from 120 000 t/y to a life-of-mine (LoM) average of 240 000 t/y. 

The process expansion is supported by a ramp-up of total mining volumes, which are planned to increase incrementally year-on-year, from 150-million tonnes a year in 2024 to about 240-million tonnes a year in 2028, and then to an average rate of 290-million tonnes a year from 2030 onwards.

Potential Job Creation
The expansion will need about 550 additional workers over the next five years to support the ramp-up and an additional 2 500 construction workers for a three-year period, to 2028.

Net Present Value/Internal Rate of Return
Barrick contends that the phased ramp-up will allow for a competitive cost profile over the LoM. Yearly operating cash flow and free cash flow are projected to improve by as much as 85% and 60% respectively, based on the long-term copper price consensus. These production and cost improvements will contribute to an estimated incremental net present value, at an 8% discount rate, of $1.7-billion.

At a flat long-term average copper price consensus of $4.13/lb, Barrick estimates that the project will deliver an incremental internal rate of return (IRR) of 20% and a total mine IRR of more than 50%, paying back the initial expansion capital in about two years after the expansion is complete. 

Capital Expenditure
About $2-billion.

Planned Start/End Date
The feasibility study is expected by the end of December 2024, paving the way for construction to start in 2025. Commissioning of the new process plant is planned to start in the second half of 2027.  First production is targeted for 2028.

Latest Developments
Feasibility studies are on track for the end of the year and long-lead equipment orders have been placed with Weir, Metso and FLS.

Expansion camp construction and permitting of the site airstrip are in progress.

The engineering, procurement and construction management tender is under way, with the final award expected this quarter.

The environmental- and social-impact assessment has been completed and formally submitted to the Zambia Environmental Management Agency; approval is expected by the end of the year.

The resettlement action plan and community engagement are progressing on schedule.

The proposal for grid infrastructure upgrades has been submitted to Zambia State-owned power utility Zesco. Detailed designs for the static synchronous compensator are also under way.

Barrick expects to re-evaluate Lumwana’s status as a potential material property following the completion of the feasibility study and the preparation of updated mineral reserves and resources estimates as of December 31, 2024. 

Key Contracts, Suppliers and Consultants
Weir, Metso and FLSmidth (mining equipment).

Contact Details for Project Information
Barrick Gold investor and media relations, Kathy du Plessis, tel +44 20 7557 7738 or email barrick@dpapr.com.