Barrick says feasibility for Lumwana copper mine expansion expected year-end

According to Barrick, the expansion involves first doubling the mine throughput from the current 27 million tonnes to 52 million tonnes by twinning the existing process circuit, and then by significantly increasing mining volumes. This would result in a life-of-mine average annual production of 240,000 tonnes, compared with the current average of 120,000 tonnes.

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 in 2024 to approximately 240 million tonnes in 2028 and then to an average rate of 290 million tonnes from 2030 onwards.

“The phased ramp-up will enable a competitive cost profile over the life of the mine and annual 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,” Barrick’s chief operating officer for the Africa and Middle East Sebastiaan Bock said in a news release.

“These production and cost improvements will contribute to an estimated incremental net present value (at 8% discount) of $1.7 billion,” he added.

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

Post-expansion, cost of sales and C1 cash costs are estimated at approximately $2.36/lb. and $1.85/lb., respectively, placing Lumwana in the first quartile of the industry, excluding the benefit of any byproducts, the company says.

According to mineral resource management and evaluation executive Simon Bottoms, the process plant engineering has matured to a point that has allowed Barrick to select major equipment vendors and place orders for long lead equipment, including both mills and crushers.

“We are starting detailed engineering works this quarter and expanding our onsite accommodation while building partnerships with key suppliers and contractors ahead of the pre-construction ground preparation works, which are scheduled to start next year,” said Bottoms.

Commissioning of the new process plant is planned to start in the second half of 2027. Once the new process circuit is commissioned, the existing circuit will undergo a series of planned shutdowns, allowing Barrick to install upgrades, while ensuring uninterrupted copper delivery throughout the expansion.

The permitting process for the expansion is well underway, with the environmental and social impact assessment already submitted to the Zambian authorities and approval expected by the end of this year.