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Tuesday, July 7, 2020

Barrick’s $1bn Lumwana mine in Zambia attracts Chinese interest

Economy Barrick’s $1bn Lumwana mine in Zambia attracts Chinese interest

The Lumwana copper mine is located about 100 km west of Solwezi in Zambia’s Copperbelt. (Image courtesy of Barrick Gold.)
The Lumwana copper mine is located about 100 km west of Solwezi in Zambia’s Copperbelt. (Image courtesy of Barrick Gold.)

China Minmetals, Jiangxi Copper and Zijin Mining are among the firms weighing to bid for Canadian mining firm Barrick Gold’s Lunwana copper mine in Zambia.

If the deal materialises, the mine could be worth approximately $1bn.

China Molybdenum and Aluminum Corp were also invited to take part in the bid.

Barrick is currently working with advisers to draw interest for the mine.
The Lumwana copper mine is a conventional open pit mine, located approximately 100km west of Solwezi town in Zambia’s copperbelt region.

It is expected to produce 210 to 240 million pounds of copper in 2019 and has proven and probable copper reserves of over 4.5 billion pounds.

In August, Barrick Gold CEO Mark Bristow said that the company is focusing on divesting $1.5bn of assets by the end of the next year.

The Lumwana mine was officially inaugurated in April 2009 by Equinox Minerals.

In April 2011, Barrick Gold signed a support agreement to acquire all issued and outstanding common shares of Equinox Minerals in a takeover offer valued at C$7.3bn ($7.6bn).

Equinox Minerals was acquired by Barrick Gold in July 2011.

Barrick Gold announced its plans to suspend operations at the mine in 2014 following the Zambian Government’s move to raise mining taxes on open-pit mining operations in the country.

In July, the company signed an agreement to acquire a stake in Acacia Mining.

Meanwhile, Barrick is also working with Bank of Nova Scotia to scout for buyers for its Tongon Gold mine in Côte d’Ivoire.

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6 COMMENTS

  1. You mean lungu and friends have sourced a corrupt infestor willing to oil their already greasy pockets. Anyway its frustrating advising a dull government. Meanwhile my white wife last night wondered why most black men think they stand a chance with her just because she is married to me a black man. She laughed at this useless man trying to win her over and told him to concentrate on helping his fellow black people improve their lives than following a happily married white woman. I love her

    • flag Corruption scandals: 48 Houses Social Security Cash Luxury Presidential Jet Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans

      Hey @N.ee.z (upnd strategist), mate are you the new Mushota with your monotonous monologue of your white bimbo… you sound ridiculous and insecure mate!

      Meanwhile such incoherent reporting, Acacia mine, bra bra… no connection of events and places whatsoever

  2. Zambia is going down the gutter of PF corruption . Findlay and Sikutwa are Lungu’s buddies. Drug dealers and financial scammers. Madison Assets Management has scammed the depositors and Lungu is protecting Dikhta Lawrence of LSA group. Madison Life is skimming policyholders by siphoning of interest that belongs to them. Act now Corrupt Lungu or in 2021 Ex ZISC employees will squeeze your balls.

  3. flag Corruption scandals: 48 Houses Social Security Cash Luxury Presidential Jet Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans

    Hey @N.ee.z (upnd strategist), mate are you the new Mushota with your monotonous monologue of your white bimbo… you sound ridiculous and insecure mate!

    Meanwhile such incoherent reporting, Acacia mine, bra bra… no connection of events and places whatsoever

  4. Guys,
    As I said about FQML
    …The following synergies are to be derived:
    1) Economy of scale when buying inputs like:
    **Explosives
    **Tyres
    **Mining chemicals
    **Mill balls
    **Explosives
    **PPE, etc
    All of which can be sourced from China
    2) The Chinese work ethic
    3) Efficiency enhancement, and
    4) Labour and salary rationalisation

    However, there will be a few inevitable downsides such as:
    a) The entire labour force will have to accommodate a wage cut of 10-15%
    b) Expat labour will be terminated and replaced by Chinese
    c) Zambian superintends and managers will be shadowed by a Chinese national

    ALL ZAMBIAN MINES NEED TO FALL UNDER THE UMBRELLA OF CHINESE INVESTORS IN ORDER TO REMAIN VIABLE

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