Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) – Barrick’s
transformation of its Lumwana mine into a world-class producer will
provide strong impetus for the government’s thrust to revive the
country’s copper industry, president and chief executive Mark
Bristow said yesterday after a meeting with Zambian President
Hakainde Hichilema.
Barrick is investing almost $2 billion in an
expansion project designed to increase Lumwana’s annual production
to an estimated 240,000 tonnes of copper from a 50 million tonne
per annum process plant over a 36-year life of mine, elevating this
once-unprofitable operation into the front rank of copper
producers. The project’s accelerated work program is targeting
completion of the full feasibility study by the end of 2024,
bringing expected expanded process plant production forward 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
procurement of goods and services. In addition to its local
procurement 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 sustainable
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
the countries’ governments and people, notably our neighbouring
communities,” Bristow said.
Last year Barrick launched a Business Accelerator
Program aimed at building business capacity for the Zambian
contractors in Lumwana’s supply chain and to support them in
effecting their own growth plans. It is also partnering with the
country’s Ministry of Small and Medium Enterprises to support the
development of these businesses.
Looking at Lumwana’s current performance, Bristow
said it was on track to deliver its production guidance for 2023
and was ramping up owner mining with both the reopening of the
Malundwe pit as well as delivery of the new owner mining
pre-stripping fleet.
Republican President Hakainde Hichilema stated he was elated by
the news of the planned expansion. “This is a show of confidence in
our New Dawn government by one of the world’s leading mining
companies. Our laser focus is on establishing Zambia as a
global mining destination. We have also set ourselves the target of
producing 3 million tonnes of copper by 2030. Barrick is a
key strategic partner on this journey.”
President Hichilema called on Barrick to prioritise local
content and increase the participation of Zambian suppliers to the
Lumwana mine. He also encouraged Barrick to deploy the most
advanced mining technology and invest in downstream value addition
in support of the New Dawn’s vision of establishing green
industrial parks in Zambia.
Barrick enquiriesInvestor and
media relationsKathy du Plessis+44 20 7557 7738Email:
barrick@dpapr.com
Website: www.barrick.com
Technical Information The
scientific and technical information contained in this press
release has been reviewed and approved by Richard Peattie, MPhil,
FAusIMM, Mineral Resources Manager: Africa & Middle East, a
“Qualified Person” as defined in National Instrument 43-101 –
Standards of Disclosure for Mineral Projects.
Cautionary Statement on Forward-Looking
Information Certain information contained in this press
release, including any information as to our strategy, projects,
plans or future financial or operating performance, constitutes
“forward-looking statements”. All statements, other than statements
of historical fact, are forward-looking statements. The words
“transform”, “expand”, “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, with respect to: planned
capital expenditures and the anticipated benefits from the Lumwana
Super Pit expansion project including estimated annual production
and throughput and potential life of mine extensions at Lumwana;
Lumwana’s transformation into a world-class copper mine; Barrick’s
partnership with Zambia and Lumwana’s contributions to the Zambian
economy; Lumwana’s ability to meet 2023 production guidance; the
reopening of the Malundwe pit and 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 Accelerator 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
upon a number of estimates and assumptions including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by the Company as at the date of
this press release in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, 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. Such
factors include, but are not limited to: fluctuations in the spot
and forward 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 do or may
carry on business in the future; changes in mineral production
performance, exploitation, and exploration successes; the
possibility that future exploration results will not be consistent
with the Company’s expectations; disruption of supply routes which
may cause delays in construction and mining activities, including
disruptions in the supply of key mining inputs due to the invasion
of Ukraine by Russia; risk of loss due to acts of war, terrorism,
sabotage and civil disturbances; failure to comply with
environmental and health and safety laws and regulations; timing of
receipt of, or failure to comply with, necessary permits and
approvals; uncertainty whether some or all of Barrick’s targeted
investments and projects will meet 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 with respect to the
Company’s handling of environmental matters or dealings with
community groups, whether 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
legal and administrative proceedings; employee relations including
loss of key employees; increased costs and physical and transition
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
reporting of risks; and availability and increased costs associated
with mining inputs and labor. Barrick also cautions that its
guidance may be impacted by the ongoing business and social
disruption caused by the spread of Covid-19. In addition, there are
risks and hazards associated with the business of mineral
exploration, development and mining, including environmental
hazards, industrial accidents, unusual or unexpected formations,
pressures, cave-ins, flooding and gold bullion, copper cathode or
gold or copper concentrate losses (and the risk of inadequate
insurance, or inability to obtain insurance, to cover these
risks).
Many of these uncertainties and contingencies can
affect our actual results and could cause actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future
performance. All of the 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 on file with the SEC
and Canadian provincial securities regulatory authorities 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.
Barrick disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by applicable law.
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