Name of the Project
Lumwana superpit expansion.

Location
Zambia.

Project Owner/s
Gold and copper producer 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 project is expected to create 550 permanent jobs.

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, according to Barrick chief operating officer for Africa and Middle East Sebastiaan Bock.

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
To be confirmed.

Planned Start/End Date
Commissioning of the new process plant is planned to start in the second half of 2027.

Latest Developments
Barrick Gold’s Business Accelerator Programme requires 150 small- and medium-sized enterprises to support the upcoming superpit expansion.

The project is extending its Technical Education, Vocational and Entrepreneurship Training Authority-accredited training centre to equip local workers with critical skills. Currently, 99% of Lumwana’s employees are Zambian nationals.

“We are transforming the surrounding Kalumbila District into a mining-powered economic hub that will endure beyond Lumwana’s expanded life-of-mine,” Barrick president and CEO Mark Bristow has said.

Plans include new employee housing in the Manyama town, an industrial supplier park and an airport that is expected to be operational by the end of the year.

The masterplan, developed in collaboration with local authorities, aligns with Zambia’s integrated development strategy.

Key Contracts, Suppliers and Consultants
No details available.

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