Modern Mining January 2025

TOP PROJECTS

up of total mining volumes, which are planned to increase incrementally year-on-year, from 150 mt this year, to close to 240 mt by 2028 - and then to an average rate of 290 mt per annum from 2030 onwards.” He estimates that at a flat, long-term average copper price consensus of $4.13 /lb, the project can deliver an incremental Internal Rate of Return (IRR) of 20% and a total mine IRR of more than 50%. This means it will pay back the initial expansion capital approximately two years after completion of the expansion. Post-expansion, sales and C1 cash costs are estimated at approximately $2.36 /lb and $1.85 /lb, respectively. This places Lumwana in the first quartile of the industry, excluding the benefit of any byproducts. “Furthermore, the process plant engineering has matured to a point that has allowed us to select major equipment vendors and place orders for long lead equipment, including both mills and crushers,” says Bristow. “We are starting detailed engineering works this quarter and expanding our onsite accommodation, while building partnerships with key suppliers and contractors ahead of the pre-construction ground preparation works, which are scheduled to start this year.” He adds that the commissioning of the new process plant is planned to start in the second half of 2027. Once the new process circuit is commissioned, the existing circuit will undergo a series of scheduled shutdowns, allowing the company to install upgrades while ensuring uninterrupted copper delivery throughout the expansion. The permitting process for the expansion is well underway. The environmental and social impact assessment has already been submitted to the Zambian authorities, with approval expected by the end of this year. Accelerating local businesses As part of the project, Barrick has implemented its Business Accelerator Programme (BAP), an approach that aims to build business capacity for the various Zambian contractors in Lumwana’s supply chain and support them in implementing their growth plans. The company has further chosen to partner with the country’s Ministry of Small and Medium Enterprises to support the development of these businesses. Known as the 10X BAP, it will be implemented by the Women’s Entrepreneurship Access Centre (WEAC) and aims to build business capacity for local contractors in Barrick’s mining supply chain. It will further support them in implementing their growth plans and diversifying their markets, enabling them to become sustainable beyond the mine’s operations. Barrick’s 10X BAP further aims to enable these SMEs to better position themselves for sustainable growth, including the capacity to bid for and service larger supply tenders. “As a private sector local supplier initiative, BAP has the potential to stimulate regional economic growth, given the significance of the mining sector in the economy and its impact on other subsectors. Barrick points out that an investment of this nature effectively extends the local community’s benefit from Lumwana’s operations,” adds Bristow.

The Lumwana copper mine, once facing economic challenges, is on the brink of a remarkable turnaround.

Suppliers and surrounding communities He points out that a critical element of the Super Pit Expansion is its focus on creating a sustainable legacy, a goal which will be achieved by developing local capacity within the region, benefiting surrounding communities and businesses throughout the construction and operational phases. The expansion will need around 550 additional workers over the next five years to support the ramp-up and 2 500 construction workers for three years, until 2028. “We are also planning to build critical infrastructure, including an airstrip and an industrial supplier park. This will enable key suppliers to establish themselves in the area, creating an economic hub that will further fuel growth and development in the wider region,” adds Bristow. “Barrick believes that its host countries are its key stakeholders, and that partnering with them creates sustainable value for both parties. In Zambia, as elsewhere in our global network, we seek to share the economic benefits generated by our mines with the country’s government and people, notably our neighbouring communities.” The Lumwana Super Pit Expansion is critical to the Zambian government’s drive to revive the country’s copper industry over the next decade. Meanwhile, Barrick’s approach to sustainable value means the project will also significantly impact Zambia’s unemployment statistics. The company takes this approach seriously, as evidenced by the fact that local procurement—$472 million in 2023— made up more than 81% of Lumwana’s total spending. “In addition, Barrick has launched a Business Accelerator Programme (BAP) that is designed to build the business capacity of the Zambian contractors in its supply chain. BAP will equip them to grow and diversify their enterprises, while helping them to remain sustainable beyond Lumwana’s overall life of mine.” “Lastly, and in line with Barrick’s partnership philosophy, the company’s REDD+ initiative will uplift host communities through the conservation of the natural forest surrounding the mine. In this regard, resources have already been allocated, while engagement with the surrounding communities is underway,” concludes Bristow. n

44  MODERN MINING  www.modernminingmagazine.co.za | JANUARY 2025