Great Future Beckons for Lumwana as Barrick Unlocks Potential
July 07 2023 - 7:30AM
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) – Barrick’s drive to
transform the Lumwana copper mine into a Tier One1 asset with a
life extending beyond 2060 is picking up speed with a strong
performance in the past quarter adding impetus to its continuing
production ramp-up.
Briefing media at a site visit here today,
Barrick president and chief executive Mark Bristow said the mine’s
full potential was only now being revealed. Additional expansion
opportunities, identified through an updated geological model, are
currently being assessed, while drilling at the Kababisa prospect
highlights potential mining flexibility through higher grades. The
Lumwana pre-feasibility study is progressing in line with our plans
to transform its long-term copper profile through the delivery of
the envisioned super pit.
“Since Barrick refocused its strategy in Africa
in 2019, Lumwana has become a key element in the expansion of our
strategic copper portfolio and a significant contributor to our
bottom line. At the same time its importance to Zambia has grown.
Since 2019 it has contributed more than $2.3 billion to the
country’s economy in the form of royalties, taxes, salaries and
purchases from local suppliers,” he said.
Barrick has a global policy of sourcing its
suppliers locally and last year it spent $432 million, 83% of its
total procurement, with Zambian suppliers and contractors. It has
also launched a “Business Accelerator Program” to build the
capacity of Zambian contractors in the mining supply chain.
Similarly, Barrick is committed to local
employment. Currently 99.3% of Lumwana’s employees and 98% of its
contractors are Zambian nationals, both industry-leading
statistics.
Lumwana is a participant in the United Nations’
REDD+ project, which is designed to reduce greenhouse gas emissions
from deforestation, and the mine has engaged with its communities
on this initiative.
Barrick enquiries
Investor and media relationsKathy du Plessis+44
20 7557 7738Email: barrick@dpapr.com
Website: www.barrick.com
Endnote 1
A Tier One Copper Asset is an asset with a
reserve potential of greater than five million tonnes of contained
copper and C1 cash costs per pound over the mine life that are in
the lower half of the industry cost curve.
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”, “extend”, ramp-up”, “started”, “will”, “continue” and
similar expressions identify forward-looking statements. In
particular, this press release contains forward-looking statements
including, without limitation, with respect to: potential life of
mine extensions at Lumwana; Barrick’s commitment to employing host
country nationals and creating long-term value for its host
communities in Zambia; Barrick’s focus on Tier One Assets and its
potential for growth while delivering sustainable returns;
Barrick’s sustainability strategy, including projects to reduce
greenhouse gas or carbon dioxide emissions in Zambia; 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
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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
relating to 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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