Lumwana’s Super Pit Expansion Officially Launched
The development of a Super Pit at Barrick’s Lumwana copper mine was officially launched in October 2024 by the Zambian President, His Excellency Hakainde Hichilema, accompanied by members of his cabinet.
Speaking at the groundbreaking ceremony also attended by the Barrick board of directors, Mark Bristow said a critical element of the Super Pit Expansion was its focus on creating a sustainable legacy through the development of local capacity within the region, which would benefit both local 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 an additional 2,500 construction workers for a three-year period to 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,” Bristow said.
“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 of the country and beyond,” said President Hakainde Hichilema.
Feasibility study expected by year-end
The feasibility study for the Super Pit Expansion is expected by the end of the year, paving the way for construction to start in 2025.
Once completed, the $2 billion project unlocks the potential to transform Lumwana into a long-life, high-yielding, top 25 copper producer and a Tier One copper mine, capable of contending with the volatility of the copper demand cycles.
The expansion involves first doubling throughput of the existing process circuit and then significantly increasing mining volumes. Plant throughput will grow from the current 27Mt to 52Mt, doubling the mine’s annual copper production from 120kt to a life-of-mine average of 240kt a year.
The process plant expansion is supported by a ramp-up of total mining volumes, which are planned to increase incrementally year-on-year, from 150Mt in 2025 to approximately 240Mt in 2028 and then to an average rate of 290Mt per annum from 2030 onwards.
Chief operating officer for Africa and Middle East Sebastiaan Bock said, “The phased ramp-up will enable a competitive cost profile over the life of the mine and annual operating cash flow and free cash flow are projected to improve by as much as 85% and 60%, respectively, based on the long-term copper price consensus.
These production and cost improvements will contribute to an estimated incremental net present value (NPV8) of $1.7 billion.”
IRR of approximately 20%
At a flat long-term average copper price consensus of $4.13/lb, Barrick estimates that the project will deliver an incremental internal rate of return (“IRR”) of approximately 20% and a total mine IRR of more than 50%, paying back the initial expansion capital in approximately two years after completion of the expansion.
Post-expansion, cost of sales and C1 cash costs are estimated at approximately $2.36/lb and $1.85/lb, respectively, placing Lumwana in the first quartile of the industry, excluding the benefit of any byproducts.
Engineering works
According to mineral resource management and evaluation executive Simon Bottoms, the process plant engineering has matured to a point that has allowed Barrick to select major equipment vendors and place orders for long lead equipment, including both mills and crushers.
“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 next year,” said Bottoms.
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 planned shutdowns, allowing Barrick to install upgrades, while ensuring uninterrupted copper delivery throughout the expansion.
The permitting process for the expansion is well underway. An Environmental and Social Impact Assessment (“ESIA”) has already been submitted to the Zambian authorities and approval is expected by the end of this year.
