‘Copper is as strategic as gold is precious’ has become one of Barrick’s recent taglines. How strategic is copper within Barrick Gold’s portfolio and how is the US$2 billion expansion at Lumwana contributing to your copper strategy?

Barrick acquired the Lumwana asset in 2011 from Equinox, when the business was under a lot of stress. Following the Barrick-Randgold merger, the company refocussed its strategy to include copper. We have since announced major investments in copper including the expansion of the Lumwana copper mine in Zambia. The US$2 billion Super Pit expansion at Lumwana will double our production from an average of 120,000 to 240,000 t/y by 2028. Construction is due to begin next year and expect to extend the LOM by another 36 years.

Could you give us a sense of the socioeconomic impact of the Lumwana expansion and Barrick’s broader CSR work?

Mining is the bedrock of Zambia’s economy, accounting for 70% of Forex earnings and between 15 to 19% of GDP. Lumwana plays a direct role not only through revenue contributions to the state but also through employment opportunities and local procurement – currently, we have 3,000 direct employees and 2,500 contractors, and we expect the number to grow to around 8,000 during the construction phase. The expansion will significantly accelerate economic activity in the Kalumbila District, where we are essentially developing a town with housing for all our employees, as well as social and commercial additional amenities like an airstrip and industrial park. 

Our CSR programs have been a big part of our work in the country for many years. Through the Lumwana Community Trust, we have contributed to the construction of hospitals, schools, road infrastructure and agriculture initiatives, in partnership with the three chiefdoms in our localities. In 2021, we went a step further and launched the Community Development Committee; some of our flagship projects under this program included improvements at a secondary school in Mayama, investing in a new police post, and supporting agriculture projects. A lot more is still to be done. Our NVEP (Nos Vies en Partage) Foundation is deeply invested in the countryside, partnering with orphanages and vulnerable people. One of the most recent partnerships via the NEVP was to partner with the Disaster Management & Mitigation Unit (DMMU) with a donation of US$50,000 to alleviate the impacts of the drought on food availability – 6 million Zambians are currently facing food shortages due to this historic drought. 

How do you think Zambia fares in terms of investment attractiveness today?

Since taking office in 2021, President Hakainde Hichilema has made commitments to improve the investment climate, being a former businessman himself. His government has passed multiple reforms to stabilize the mineral royalty regime which used to be incredibly volatile. The government introduced duty waivers on mining equipment to encourage investment in the country. Very important is also the openness to dialogue, which the president and his cabinet show in a way that has not been done before. The mining industry shares a common goal with the government, and that is to ramp up copper production in the country to 3 million t by 2031. We think this is achievable with the current policies.

Power availability will be a big challenge. What is your take?

Power is one of the biggest challenges.  However, Zambia is currently revising its energy policy to liberalize the sector, meaning that private operators can now supply power to the grid and to the main industries. Sometimes, challenges serve to push us towards opportunities and innovative solutions. 

Do you have maybe a final message you'd like to share with our readers?

Zambia is a beautiful, extremely peaceful, and welcoming country, and I encourage everyone to come see it. Being able to have open dialog with the government has been extremely refreshing; we can solve issues faster and there are no separate or hidden agendas. As a business, we are very excited about the bullish copper projections as a metal of the future and Zambia’s role in supplying the coveted red metal.