All amounts expressed in US$
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) Barrick’s transformation of its Lumwana mine into a world-class producer will provide a strong boost to government efforts to revive the country’s copper industry, it said yesterday CEO Mark Bristow after a meeting with Zambian President Hakainde Hichilema.
Barrick is investing nearly $2 billion in an expansion project aimed at increasing Lumwana’s annual production to approximately 240,000 tonnes of copper from a 50 million tonne per year processing plant over a 36-year lifespan. years, thus elevating this once unprofitable operation to the forefront. rank of copper producers. The project’s accelerated work program targets completion of the full feasibility study by the end of 2024, bringing forward the planned increased production of the processing plant to 2028.
Since Barrick took over operations at Lumwana in 2019, the mine has contributed almost $3 billion to the Zambian economy in the form of taxes, royalties, salaries and the purchase of goods and services. In addition to its local sourcing policy, the company is also committed to local employment, and 99.3% of Lumwana’s current workforce are Zambian nationals.
“Barrick believes that its host countries are its key stakeholders and that partnering with them creates lasting value for both of us. In Zambia as elsewhere in our global network, we seek to share the economic benefits generated by our mines with governments and country governments. people, especially our neighboring communities,” Bristow said.
Last year, Barrick launched a business acceleration program aimed at building the business capabilities of Zambian entrepreneurs in the Lumwana supply chain and helping them implement their own growth plans. It also partners with the country’s Ministry of Small and Medium Enterprises to support the development of these businesses.
Regarding Lumwana’s current performance, Bristow said it was on track to meet its 2023 production guidance and was accelerating owner mining with both the reopening of the pit of Malundwe and the delivery of the new owner’s mining pre-stripping fleet.
Republican President Hakainde Hichilema said he was delighted with the announcement of the planned expansion. “This is a show of confidence in our New Dawn government from one of the world’s leading mining companies. Our main goal is to make Zambia a global mining destination. We also set out to objective to produce 3 million tonnes of copper by 2030. … Barrick is a key strategic partner in this adventure.”
President Hichilema called on Barrick to prioritize local content and increase the participation of Zambian suppliers at the Lumwana mine. He also encouraged Barrick to deploy the most advanced mining technology and invest in downstream value addition to support New Dawn’s vision of establishing green industrial parks in Zambia.
Investor and media relations
Kathy du Plessis
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The scientific and technical information contained in this press release has been reviewed and approved by Richard Peattie, MPhil, FAusIMM, Director of Mineral Resources: Africa and Middle East, a “qualified person” as defined in National Instrument 43-101 – Disclosure standards for mining projects .
Caution Regarding Forward-Looking Information
Certain information contained in this press release, including any information regarding our strategy, projects, plans or future financial or operational performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “transform,” “develop,” “target,” “expect,” “aim,” “growth,” “on track” and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, regarding: planned capital expenditures and anticipated benefits of the Lumwana Super Pit Expansion Project, including estimated annual production and throughput and the potential lifespan of mine extensions at Lumwana; The transformation of Lumwana into a world-class copper mine; Barrick’s partnership with Zambia and Lumwana’s contributions to the Zambian economy; Lumwana’s ability to meet production forecasts for 2023; the reopening of the Malundwe pit and the delivery of a new pre-stripping fleet; Barrick’s commitment to employing host country nationals and creating long-term value for its host communities in Zambia, including through the Business Acceleration Program; Barrick’s sustainability strategy; and Barrick’s future investments in community projects and contributions to the Zambian economy.
Forward-looking statements are necessarily based on a number of estimates and assumptions, including significant estimates and assumptions relating to the factors set forth below, although considered reasonable by the Company as of the date of this press release as of In light of management’s experience and perception, Current conditions and expected developments are inherently subject to significant commercial, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. These factors include, but are not limited to: fluctuations in the spot and futures price of gold, copper or certain other commodities (such as silver, diesel fuel, natural gas and electricity) ; the speculative nature of mineral exploration and development; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices; expropriation or nationalization of property and political or economic developments in Zambia and other jurisdictions in which the Company or its affiliates carry on or may carry on business in the future; changes in mining production performance, mining and exploration success; the possibility that future exploration results may not be consistent with the Company’s expectations; disruption of supply routes which could result in delays in construction and mining activities, including disruptions in the supply of key mining inputs due to Russia’s invasion of Ukraine; risk of loss due to acts of war, terrorism, sabotage and civil unrest; failure to comply with environmental, health and safety laws and regulations; the timing of receipt or failure to comply with necessary permits and approvals; uncertainty as to whether some or all of Barrick’s targeted investments and projects will achieve the Company’s capital allocation objectives and internal hurdle rate; damage to the Company’s reputation due to the actual or perceived occurrence of any number of events, including negative publicity regarding the Company’s handling of environmental issues or dealings with community groups, whether are true or not; risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic; litigation and judicial and administrative procedures; employee relations, including the loss of key employees; increasing physical and transition costs and risks related to climate change, including extreme weather events, resource shortages, emerging policies and increased regulations related to greenhouse gas emission levels, energy efficiency and risk reporting; and the availability and increasing costs associated with mining inputs and labor. Barrick also warns that its forecasts could be affected by ongoing business and social disruptions caused by the spread of Covid-19. In addition, there are risks and hazards associated with exploration, development and mining activities, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, collapses, floods and gold bars, copper cathodes or concentrates of gold or copper. losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies may affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by us or on our behalf. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form filed with the SEC and Canadian provincial securities regulators for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
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