Feasibility study for Lumwana mine nears completion
Feasibility study for Barrick’s Lumwana mine expansion in Zambia is nearing completion. Barrick CEO Mark Bristow confirmed the report and said the study is anticipated to be completed by the end of the year, with construction slated to start in 2025.
Expansion of the Lumwana mine involves twinning the existing processing circuit, boosting plant throughput from 27 million tonnes (Mt) to 52 Mt. This will effectively double the mine’s annual copper output from the current 120,000 tonnes (kt) to an average of 240,000 kt per year over the mine’s life.
Lumwana mine
Total mining volumes are planned to increase incrementally each year, starting at 150 Mt in 2024 and ramping up to approximately 240 Mt by 2028. By 2030, the mine is expected to average 290 Mt per annum.
Chief Operating Officer for Africa and the Middle East, Sebastiaan Bock, highlighted that the phased ramp-up will result in a competitive cost profile throughout the mine’s life. This strategy aims to enhance annual operating cash flow and free cash flow by up to 85% and 60%, respectively. This production boost and cost reduction will contribute to an estimated incremental Net Present Value (NPV8) of $1.7 billion.
At a projected long-term copper price of $4.13 per pound, the project is expected to deliver an incremental Internal Rate of Return (IRR) of 20% and a total mine IRR exceeding 50%. The expansion is expected to pay back its initial capital in about two years post-completion. Post-expansion, cost of sales and C1 cash costs are projected to be around $2.36/lb and $1.85/lb, respectively, placing Lumwana in the industry’s first quartile. The process plant engineering has progressed significantly, enabling Barrick to select major equipment vendors and place orders for long-lead equipment, including mills and crushers.
