The announcement by Barrick Lumwana Mine that it plans to engage more than 150 contractors in its expansion project has been received with open arms by local contractors and suppliers who have described it as a positive move.
Speaking in an interview recently, Association for Mine Contractors and Suppliers of Zambia, President Costa Mwaba said the decision by Lumwana who already have a local content drive through Kalonga Logistics will go a long way in assisting local contractors. Mr Mwaba said his associa tion has since engaged Lumwana with a view to see the modalities that the mine will use to engage local contractors and suppliers in the value chain.
“Besides the 150 targeted, we need to get more suppliers to do non-value adding products which, nevertheless, are being consumed. Meaning on the consumption side, we get more local firms supplying the mine with goods and services and then on the production side which is the mining, we get more local people to get empowered with skills and joint ventures so that Zambian contractors can also have the muscle to stand and do any project,” Mr Mwaba said.
Meanwhile, Mr Mwaba has said that as the nation also receives news of more minerals being discovered in Zambia, the emphasis should also be on supplier- contractor development in the mines strategic plans.
“If we don’t see these in the plans, these discoveries will still just be a show and our people will remain an mining sector, the country should continue negotiating for significant shareholding so that when there are in abject poverty. We’re engaging with Government and the mine owners so that locals are fully engaged by participating in the core business within the mining value chain,” he said.
Mr Mwaba added that with more prominent mining firms investing in the Zam bishocks, the nation can be able to stand based on the upper hand shareholding pedestal.
A few weeks ago, Barrick Lumwana Mine announced plans of engaging 150 local contractors and suppliers during its USD 2 billion expansion project.
Lumwana Mine General Manager Herbert Carwood revealed that the mine will identify 150 contractors and suppliers from its business accelerator programme which is meant to enhance capacity among local contractors.
Barrick has a global policy of sourcing its suppliers locally and last year it spent US$ 432 million on procurement from Zambian suppliers and contractors; this constitutes 83% of its total procurement.
Barrick has also launched a Business Accelerator Programme 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.
Mr Carwood told the media that the mine had set up the business accelerator programme to help grow the capacity of contractors and suppliers that want to participate in the mines’ expansion.
He, however, emphasized that Lumwana Mine will only engage contractors and suppliers that have the capacity during the expansion of the mine.
This follows the Canadian mining giants’ initial plans to invest around over US$ 2 billion to expand the Lumwana Copper Mine in order to increase annual production.
The investment will increase Lumwana‘s production by around 240,000 tonnes of copper from a 50 million tonne per annum capacity process plant, over a 36-year life of mine.
Barrick Gold Corporation President and Chief Executive Officer Mark Bristow said: “Barrick believes that its host countries are its key stakeholders and that partnering with them creates sustainable value for both. 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.”
The Barrick Gold Corporation website reported in July of 2023, that its drive to transform the Lumwana Copper Mine into a Tier One1 asset with a life extending beyond 2060 had also picked up speed.
A Tier One asset is one that has a reserve potential greater than five million tonnes of copper. The mine currently has 2.3 million tonnes of copper in its reserves.
Mr Bristow said Barrick had re-focused its strategy in Africa in 2019 by making Lumwana Mine a key element in the expansion of its strategic copper portfolio.
Mr 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.
“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 contribu-tor to our bottom line. At the same time its importance to Zambia has grown,” Mr Bristow said.
“Barrick’s Super Pit expansion project has since been accelerated with first production now scheduled for 2028.”
“Since Barrick took over operations at Lumwana in 2019, the mine has contributed almost USD3 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 creation, and 99.3% of Lumwanas’ current workforce are Zambian nationals,” Mr Bristow said.
He said Zambia is now in a much better position economically following the debt restructuring.
He told the media that the debt restructuring deal has given investors confidence to invest in Zambia. Mr Bristow also noted that the successful negotiations of Zambia’s debt have given Barrick Lumwana Mine confidence in the country’s policies.
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