Leading gold miner Barrick Gold (NYSE:GOLD) will complete its feasibility study for expanding its Lumwana copper mine by the end of the year. CEO Mark Bristow noted that the expansion could transform the mine into a long-life, high-yielding copper producer that will play an important role in the global copper market.

Bristow sees the Zambian mine among the top 25 global copper producers, cementing Barrick's diversification into the lucrative copper market.

The expansion will increase production by doubling plant throughput from 27 million tons to 52 million tons annually, aiming to boost Lumwana's copper output from 120,000 tons annually to a life-of-mine average of 240,000 tons. The project will also incrementally ramp up mining volumes over several years.

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The phased ramp-up will enable a competitive cost profile, improving annual operating cash flow by 85% and free cash flow by 60%, based on long-term copper price estimates." Said Sebastiaan Bock, Barrick's Chief Operating Officer for Africa and the Middle East

Lumwana, once a struggling asset, was strategically reorganized in 2019. Since then, this copper mine has contributed nearly $3 billion to the Zambian economy through taxes, royalties, wages, and local procurement, making it a vital part of the economy in this African country.

Barrick's commitment to local partnerships and sustainable practices is evident in the expansion's phased approach, which includes detailed engineering work and pre-construction preparations set to begin in 2025.

"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 Mineral Resource Manager Simon Bottoms.

Using the long-term copper price consensus of $4.13 per pound, Barrick estimated that the mine's expansion would yield an internal rate of return (IRR) of 20%. The total IRR of the mine—factoring in both current operations and the expansion—could exceed 50%.

Post-expansion C1 cash costs (representing the cash cost per unit of extracting and processing) are expected at $1.85 per pound, placing the mine in the first quartile of the industry without the benefit of other byproducts.

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