On 11th September 2024, Barrick Gold announced that the feasibility study for the Lumwana Super Pit Expansion Project in Zambia is on track for completion by the end of the year.
This milestone paves the way for construction to begin in 2025, marking a major step toward transforming the Lumwana copper mine into a long-life, high-yielding operation and a global Top 25 copper producer.
The Lumwana Super Pit expansion is poised to significantly boost Zambia’s copper output, positioning the country as a key player in the global copper market, which is crucial in light of rising demand driven by the global energy transition.
Key Project Highlights
During a recent webinar updating stakeholders on the Lumwana Super Pit Expansion Project, Barrick’s President and CEO, Mark Bristow, highlighted the transformative potential of this expansion, stating:
“The Lumwana expansion unlocks the potential to transform the mine into a long-life, high-yielding, Top 25 copper producer and a Tier One copper mine, capable of contending with the volatility of copper demand cycles.”
The expansion will initially focus on doubling throughput by twinning the existing process circuit and ramping up mining volumes.
Once completed, plant throughput is expected to increase from the current 27 million tonnes (Mt) to 52Mt annually, effectively doubling copper production from 120,000 tonnes per annum (ktpa) to a life-of-mine average of 240ktpa.
In line with this, total mining volumes will increase incrementally from 150Mt in 2024 to approximately 240Mt by 2028, and reach an average of 290Mt per annum from 2030 onwards.
These developments will allow Lumwana to produce at a competitive cost profile, ensuring its resilience in the face of fluctuating copper prices.
Financial Outlook and Economic Impact
Sebastiaan Bock, Barrick’s Chief Operating Officer for Africa and the Middle East, emphasized the positive financial impact of the phased ramp-up on the mine’s profitability:
“The phased ramp-up will enable a competitive cost profile over the life of the mine. Annual operating cash flow and free cash flow are projected to improve by as much as 85% and 60%, respectively, based on long-term copper price consensus.”
With an estimated incremental net present value (NPV) of $1.7 billion and a 20% internal rate of return (IRR), the expansion project is expected to deliver substantial returns.
Barrick estimates that at a flat long-term copper price of $4.13/lb, the overall project IRR will exceed 50%, with a payback period of just two years after the completion of the expansion.
Post-expansion, Lumwana’s cost of sales and C1 cash costs are expected to be around $2.36/lb and $1.85/lb, respectively, placing the mine in the industry’s first quartile.
This competitive cost structure will further cement Lumwana’s role as a major player in the global copper industry.
Progress on Engineering and Permitting
Simon Bottoms, Barrick’s Mineral Resource Management and Evaluation Executive, provided an update on the engineering progress:
“The process plant engineering has matured to a point that has allowed Barrick to select major equipment vendors and place orders for long-lead items, including mills and crushers. We are starting detailed engineering works this quarter and expanding our onsite accommodation.”
The pre-construction phase is slated to begin next year with ground preparation works. The project is also advancing through the permitting phase, with the Environmental and Social Impact Assessment (ESIA) already submitted to the Zambian authorities.
Approval is expected by the end of the year, ensuring the project stays on schedule.
Commissioning of the new process plant is planned for the second half of 2027. During this time, the existing process circuit will undergo planned shutdowns for upgrades, with no interruption to copper deliveries expected.
Lumwana Mine and Zambia’s Strategic Role in Copper Production
The Lumwana copper mine, located in the North-Western Province of Zambia, is one of the country’s most significant mining operations. Acquired by Barrick in 2011, the mine has steadily contributed to Zambia’s status as Africa’s second-largest copper producer.
With the global shift toward renewable energy sources, copper demand is expected to surge, as the metal is crucial for electric vehicles, renewable energy infrastructure, and other green technologies.
Zambia, with its rich copper reserves, stands to benefit greatly from this trend, and the Lumwana Super Pit Expansion is a key part of the country’s strategy to capitalize on this opportunity.
