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Barrick Gold (TSX: ABX)(NYSE: GOLD) plans to invest almost $2 billion in an expansion of its Lumwana copper mine in Zambia, with the purpose of increasing production.
The project will increase Lumwana’s annual production to an estimated 240,000 tonnes of copper from a 50 million tonnes per annum process plant over a 36-year life of mine, Barrick said on Wednesday.
The move is part of the company’s wider plan to extend the life of the mine to 2060 and help Zambia revive its copper industry, chief executive Mark Bristow said.
“Barrick believes that its host countries are its key stakeholders and that partnering with them creates sustainable value for both of us,” Bristow said.
Zambia already is Africa’s second-largest copper producer after its northern neighbour, the Democratic Republic of Congo.
Barrick said it aims to complete the full feasibility study by the end of 2024, bringing the expanded production forward to 2028.
Over the past year, the Canadian gold giant has expressed its intention to add more copper assets to its African portfolio, expanding its presence on the continent’s copper belt. Activity is picking up in the region with KoBold Metals recently investing in the Mingomba project and junior Midnight Sun Mining (TSX-V: MMA) looking for a partner to advance its Solwezi project.
The world’s No. 2 gold miner wants to explore for new copper deposits in light of a looming deficit and high prices for the industrial metal, which is a key component in the making of electric vehicles and is vital to the renewables sector.
The company’s goal is to double its copper production by 2031 to 1 billion pounds.
Since Barrick took over operations at Lumwana in 2019, the once-unprofitable operation has contributed almost $3 billion to the Zambian economy in the form of taxes, royalties, salaries and the procurement of goods and services.
The Toronto-based miner said that 99.3% of Lumwana’s current workforce is made up of Zambian nationals.
8 Comments
Kennedy Chiti
I have been following your mining news reports from the time I worked for the Zambia Consolidated copper mines Ltd and all has been well.
Kindly check your typographic error on the quantity of copper Barrick is projecting to produce after expansions ( 240,000 tonnes) and your current tonnages being produced by Barrick is ( 50 million tonnes?)
Edit that misleading figure.
Thanks
Lubilo Mate
Hey Kennedy the Article is Spot on! ??, …
Lumwana’s current Copper Concentrator Through put is circa 25 Million Tons Per Annum (targeted at producing some 120K tons to 140,000 tons of Copper) contained in Concentrates. Increasing the thru-put capacity to sone 50 Million tons Per Annum would suggest a “doubling” of the current Plant size … with a corresponding increment of 120,000 tons per annum in Copper Production (Contained in Copper Concentrates). The CAPEX & OPEX indicated seems to “foretell” either Greenfield establishment of a Copper Smelter at Lumwana, and/ or Greenfield Establishment of a Uranium Concentrator as part of the envisaged BFS/ & expansion Program (just personal speculation, at this point)
Mukhulusi Enock
I want to invest in equipment
WEBBY LIYOKA
This is good we all dream to work with barrick
Beauty Nakamba
I would love to receive the job opportunities adverts
Cecilia Jamasmie
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Edwin Manda
Indeed the figures really got our attention as well. Thank you f9e highlighting this info.
Paul Mwewa
50 million Tonnes plant…Isn’t that overinvesting in the process plant considering the projected output is 240,000 tonnes against the 50 mil tonne plant capacity? I maybe misunderstanding the point here.