Barrick Strengthens Partnership in Zambia, Invests in Major Expansion of Lumwana Mine
Barrick Gold Corporation is reinforcing its partnership in Zambia and making a significant investment in the expansion of the Lumwana mine. The company's CEO, Mark Bristow, expressed confidence in the transformation of the Lumwana mine into a world-class copper producer, aligning with the Zambian government's efforts to revive the country's copper industry. The expansion project, with an investment of nearly $2 billion, aims to increase Lumwana's annual copper production to approximately 240,000 tonnes. The accelerated work program targets the completion of the full feasibility study by the end of 2024, bringing forward the expected expanded production to 2028.
Since taking over operations in 2019, Barrick has made significant contributions to the Zambian economy through taxes, royalties, salaries, and local procurement. The company is committed to employing local workers, with 99.3% of Lumwana's current workforce being Zambian nationals. Barrick also launched a Business Accelerator Program to support Zambian contractors in the mine's supply chain and assist in their growth plans.
The expansion plans have been well-received by Zambian President Hakainde Hichilema, who sees it as a vote of confidence in the country's mining potential. President Hichilema emphasized the importance of prioritizing local content and advanced mining technology, as well as investing in downstream value addition to support the government's vision of establishing green industrial parks in Zambia.
Barrick's investment in the Lumwana mine expansion not only strengthens its partnership with Zambia but also presents potential opportunities for new businesses in the mining supply chain. The project's success could contribute to the growth of the local economy and further solidify Zambia's position as a global mining destination.
Hot Take: The Impact of Barrick's Lumwana Mine Expansion on New Businesses
Barrick Gold Corporation's significant investment in the expansion of the Lumwana mine in Zambia presents a unique opportunity for new businesses, particularly those in the mining supply chain. The near $2 billion project, which aims to transform Lumwana into a world-class copper producer, is expected to stimulate the local economy and solidify Zambia's position as a global mining destination.
Opportunities for Local Businesses
Barrick's commitment to local employment and procurement, demonstrated by the fact that 99.3% of Lumwana's current workforce are Zambian nationals, is a boon for local businesses. The company's Business Accelerator Program, designed to support Zambian contractors in Lumwana's supply chain, could provide new businesses with the necessary support to grow and thrive.
Alignment with Government Vision
The expansion project aligns with the Zambian government's efforts to revive the country's copper industry and establish green industrial parks. This alignment could result in favorable government policies and support for businesses involved in or benefitting from the project.
Boost to the Local Economy
The success of the Lumwana mine expansion could lead to significant economic growth in Zambia, creating a favorable environment for new businesses. The project could also attract further investment into the country, providing additional opportunities for new and existing businesses.