The development of the Super Pit at Barrick’s Lumwana copper mine was officially launched in October 2024 by Zambian President Hakainde Hichilema, accompanied by his cabinet and Barrick’s board of directors.
At the groundbreaking ceremony, Barrick CEO Mark Bristow emphasized that the Super Pit Expansion focuses on creating a sustainable legacy through local capacity building.
This initiative will benefit nearby communities and businesses during both construction and operational phases.
The project will require approximately 550 additional workers over the next five years to support the ramp-up and an additional 2,500 construction workers during a three-year period leading to 2028.
Barrick also plans to develop critical infrastructure, including an airstrip and an industrial supplier park, which will enable key suppliers to establish operations locally, further stimulating economic growth in Zambia’s North-Western Province.
“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,” said President Hichilema.
A feasibility study for the Super Pit Expansion is expected by the end of 2024, setting the stage for construction to commence in 2025.
This $2 billion project aims to transform Lumwana into a long-life, high-yield copper producer, securing its position as a top 25 global copper mine.
Key features of the expansion include:
- Doubling process plant throughput from 27 Mt to 52 Mt per year.
- Increasing annual copper production from 120 kt to an average of 240 kt over the mine’s lifespan.
- Scaling up mining volumes incrementally from 150 Mt in 2025 to approximately 290 Mt annually by 2030.
Sebastiaan Bock, Barrick’s Chief Operating Officer for Africa and the Middle East, highlighted that the phased ramp-up will ensure a competitive cost profile, significantly boosting cash flow.
Annual operating and free cash flows are projected to improve by 85% and 60%, respectively, based on long-term copper price consensus.
The project is estimated to deliver an incremental net present value (NPV8) of $1.7 billion and an internal rate of return (IRR) of approximately 20%, with a total mine IRR exceeding 50%.
At a projected long-term copper price of $4.13/lb, the expansion’s capital investment is expected to be recouped within two years of completion.
Post-expansion, Lumwana’s cost of sales and C1 cash costs are forecast at $2.36/lb and $1.85/lb, respectively, placing the mine among the industry’s most cost-competitive operations.
Simon Bottoms, Barrick’s Mineral Resource Management Executive, reported significant progress in engineering and procurement.
Major equipment orders for mills and crushers have been placed, and detailed engineering works have commenced. Pre-construction ground preparation is slated to begin in 2025, supported by partnerships with key suppliers and contractors.
Commissioning of the new process plant is scheduled for the second half of 2027. During this period, the existing process circuit will undergo upgrades without disrupting copper production.
The permitting process is advancing, with an Environmental and Social Impact Assessment (ESIA) already submitted to Zambian authorities. Approval is anticipated by the end of 2024.
Barrick’s Lumwana Super Pit Expansion represents a significant step forward for Zambia’s copper mining sector, fostering economic growth, sustainability, and enhanced global competitiveness.
