Record $3.7 Billion Contribution by Barrick Gold Fuels Zambia’s Economic Growth
Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) has reaffirmed its unwavering commitment to Zambia’s economic growth, with a remarkable contribution of over $3.7 billion since 2019.
In 2024 alone, Lumwana’s operations injected $887 million into the economy through royalties, taxes, salaries, and the procurement of goods and services, solidifying its position as one of the nation’s top five taxpayers.
Copper production for 2024 met expectations, backed by investments in operator training and an upgraded ultra-class fleet.
Elevating Local Content and SME Growth
Lumwana continues to lead the way in advancing local content, with 72% of the $906 million spent on goods and services in 2024 going to Zambian suppliers and contractors.
This brings the total spend on local goods and services to an impressive $2.5 billion since 2019.
The company’s Business Accelerator Programme is further enhancing capacity, targeting 150 SMEs to support the upcoming Superpit expansion.
Transformative Expansion and Employment Opportunities
The Lumwana expansion is set to double its current copper production to a life-of-mine average of 240kt per year, creating a surge in employment opportunities.
An additional 2,500 construction workers will be employed over the construction period through to 2028, along with 550 permanent roles.
To meet these demands, Lumwana is extending its TEVETA-accredited training centre to equip local workers with critical skills. Currently, 99% of Lumwana’s employees are Zambian nationals, highlighting Barrick’s focus on sustainable workforce development.
“We are transforming the surrounding Kalumbila District into a mining-powered economic hub that will endure beyond Lumwana’s expanded life of mine,” said Barrick President and CEO Mark Bristow, speaking from Lumwana.
The master plan includes new employee housing in Manyama town, an industrial supplier park, and an airport expected to be operational by the end of 2025. This plan, developed in collaboration with local authorities, aligns with Zambia’s integrated development strategy.
Supporting Zambia’s Ambition for Increased Copper Output
Barrick is actively supporting Zambia’s ambition to increase copper output to 3Mt by 2031 through its Lumwana expansion and securing further exploration licenses in the Northern Province.
Additionally, the company is addressing Zambia’s power challenges in collaboration with ZESCO.
Since September 2024, Lumwana’s co-generation initiatives have reduced its reliance on the grid, helping to alleviate the supply-demand gap.
A joint working group, led by Barrick, is now focused on upgrading the northwestern power corridor, benefiting mines, local communities, and domestic consumers alike.
Global Market Implications
This ambitious expansion and strategic investment by Barrick Gold not only strengthen Zambia’s mining sector but also have significant implications for the global market.
With copper demand projected to rise globally, Lumwana’s increased production capacity positions Zambia as a pivotal player in meeting future copper supply needs.
The increased output will contribute to stabilizing global copper prices and ensuring a reliable supply chain, benefiting industries worldwide.
A Vision Beyond Mining
Barrick’s vision for Lumwana extends beyond mining, ensuring the benefits of its investments endure well into the future.
The company’s holistic approach integrates economic growth with sustainable development, transforming Lumwana and its surrounding regions into thriving economic hubs.
This expansion signifies a monumental step forward for Zambia’s mining sector, promising a prosperous future for the nation and its people.
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