Barrick Gold Considers Extending Lumwana Mine to 2060

Positive drilling results could see the life of Lumwana copper mine extended through to 2060, according to Executives at Barrick Gold Corp.

Barrick Gold Corp, who own the large Zambian mine, indicated at a media briefing that the mine may outlast its current 2042 termination date. Since 2019, Lumwana has been one of Zambia’s most productive copper mines, and there is optimism its profitability could outlast initial projections.

Speaking to the media, Company CEO Mark Bristow confirmed: “Promising drill results at the Lubwe satellite target are increasing our confidence that we will be able to develop a super pit and still keep producing at today’s rates and more. Should the super pit prove viable, it will substantially extend the mine’s life with a two year pre-feasibility study scheduled to commence in 2023.

Bristow noted that changes in government policy have improved the outlook for the company. The new changes to the mineral royalty tax are designed to incentivise activity in the mining sector by unlocking additional cash flows. Bristow has said the additional flow will be used to reinvest into Lumwana.

The royalty rate has been restructured as part of the 2023 budget. The aim, from January, is for a new threshold-structured tax system to smooth the impact of price fluctuations and therefore increase investor confidence. The government has also reduced property transfer tax in order to reduce the barriers to further exploration activities.

The mine now employs more than 4,400 people, almost all of whom are Zambian nationals. When speaking to the media, Bristow commented that the turnaround of the mine, from a marginal asset to one of the world’s largest copper produces, demonstrates the firm’s commitment to business in the region

The company Mopani Copper Mines is looking for a major funding injection after Glencore sold it to Zambia’s state mining investment company ZCC-IH last year. Asked if the prospect attracted Barrick, Bristow was coy but not dismissive. “We will look at all opportunities that come our way”, he said.