Barrick Gold has announced the initiation of the Lumwana super pit development, paving the way for a $2 billion (C$2.71 billion) expansion pending a final investment decision. If approved, this expansion will establish the Zambian mine as a major player in copper supply.
The feasibility study for the super pit expansion is expected to be completed by year-end, with construction slated to start in 2025. The project aims to transform Lumwana into a high-yielding, top-25 copper producer, potentially achieving Tier One status in the industry.
The initial phase of the expansion involves doubling the throughput of the current processing circuit, increasing plant capacity from 27 million tonnes (mt) to 52mt. This change is projected to boost copper production from 120,000 tonnes per annum (tpa) to an average of 240,000 tpa over the mine’s lifespan.
Additionally, total mining volumes are anticipated to rise from 150mt in 2025 to approximately 240mt by 2028, followed by an average rate of 290mt per annum starting in 2030.
Barrick’s president and CEO, Mark Bristow, emphasized plans to develop critical infrastructure, including an airstrip and an industrial supplier park, which will foster economic growth in the wider region by attracting key suppliers.
To support the expansion, Barrick will need around 550 additional workers over the next five years, alongside 2,500 construction workers until 2028.
Zambian President Hakainde Hichilema remarked during the ground-breaking ceremony on October 2, “Mining plays a key role in Zambia’s economic structure, and our partnership with Barrick is creating one team with a shared vision to develop a new economic frontier in the North-Western Province and beyond.”
With an assumed long-term average copper price of $4.13 per pound, Barrick estimates the project will yield an additional internal rate of return (IRR) of 20%, resulting in an overall mine IRR exceeding 50%. The capital for the expansion is expected to be recovered within approximately two years post-completion, with projected sales and C1 cash costs around $2.36 per pound and $1.85 per pound, respectively, positioning Lumwana among the industry’s top quartile in terms of cost efficiency, excluding by-product benefits.
