THE value of Barrick Gold’s Lumwana copper/gold mine in Zambia was more than the $735m listed in the group’s annual report, said Bloomberg News citing Barrick Gold CEO, Mark Bristow.
“We believe it’s got substantially higher value,” said Bristow in an interview with the wire service. “That’s the past. We have and we continue to improve the business,” he said. He added the group was in no hurry to sell the mine.
It has been reported that Barrick would start a sale process in January, but Bristow disputed the report, although he added the group had received expressions of interests from potential buyers.
Lumwana has attracted interest from companies including China Minmetals Corporation, Jiangxi Copper Company, and Zijin Mining Group, said Bloomberg News citing people familiar with matter said earlier this month.
Barrick Gold bought Lumwana as part of a $7bn deal two months after copper prices peaked in 2011. Two years later, Barrick had written down the asset by $3bn, said Bloomberg News. The company has dealt with frequent tax changes and power shortages in Zambia, Africa’s second-biggest copper producer, it said.
Since taking over as Barrick CEO in January, Bristow has replaced management at Lumwana, where the company plans to produce 210 million pounds to 240 million this year. The operation produced 224 million pounds last year, making it one of the biggest producers in Zambia.
