BARRICK CEO Mark Bristow said on Wednesday a study into the $2bn expansion of the group’s Lumwana copper mine in Zambia was expected to be complete by year-end.
If approved, the study will pave the way for construction at Lumwana to begin in 2025 – a development that will double the mine’s annual copper production to 240,000 tons a year. Total mining volumes will increase to 290 million tons (Mt) a year from 2030 compared to 150Mt in 2024.
Critically, permitting for the expansion is “well underway”, said Bristow. Environmental and Social Impact Assessments had been submitted to the Zambian authorities. Approval was expected by the end of this year, he said.
Post-expansion, cost of sales and 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 by-products,” the company said.
“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,” said Barrick’s COO for Africa and the Middle East, Sebastiaan Bock.
“These production and cost improvements will contribute to an estimated incremental net present value of $1.7bn,” he added.
The expansion will deliver an incremental internal rate of return of 20% based on a flat long term average copper price of $4.13 per pound. This will enable a payback on initial capital of two years once the project is completed.
Commissioning of the new process plant is planned to start in the second half of 2027, said Barrick. “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,” it said.
Barrick said in January that first production from its Lumwana expansion had been accelerated following a meeting between Bristow and Hakainde Hichilema, Zambia’s president.
