Barrick Mining’s $2-billion Lumwana copper expansion project in Zambia remains on schedule, with construction of the new copper processing mill expected to be completed in the fourth quarter (Q4) of 2026, positioning the mine to more than double its annual copper production by 2028.
The New York- and Toronto-listed gold and copper producer reported on November 9 that $795-million had been invested in the project to date, with total expected capital expenditure remaining on target at $2-billion.
First copper from the expanded operation is expected by the end of the first quarter of 2028, increasing annual production capacity to 240 000 t from the current 117 000 t. At the expanded production rate, Lumwana is expected to have a life-of-mine of 30 years.
Construction progress remains positive, with all major long-lead equipment procured. The mill shells and trunnions, primary crusher and tailings thickener have also been delivered to site.
Work on the primary crusher’s third level is nearing completion, while the final mill wall lifts are expected to be completed in Q4 2026. Construction of the tailings storage facility is also scheduled to commence during the fourth quarter.
The expansion is a key part of Barrick’s strategy to strengthen its copper portfolio and increase production from its Zambian operations.
Meanwhile, Barrick reported third-quarter copper production of 50 000 t, alongside gold production of 816 000 oz. The combined output generated revenue of $5.07-billion, operating cash flow of $2.49-billion, attributable operating cash flow of $1.80-billion and attributable free cash flow of $640-million.
President and CEO Mark Hill said the company remained on track to achieve its full-year production guidance.
Barrick maintained its 2026 gold production forecast of 2.90-million ounces to 3.25-million ounces, while copper production guidance remained unchanged at 190 000 t to 220 000 t.
The company’s third-quarter financial performance reflected higher commodity prices, with revenue increasing 22% year-on-year to $5.07-billion. Earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 13% to $3.22-billion, while attributable adjusted Ebitda increased 22% to $2.47-billion.
Net earnings for the quarter reached $1.32-billion, compared with $1.30-billion in the corresponding period last year. Adjusted net earnings increased to $1.35-billion from $980-million. Net earnings per share rose 5% to $0.80, while adjusted net earnings per share increased 41% to $0.82.
However, higher operating costs continued to weigh on margins. Gold cost of sales increased to $1 950/oz from $1 562/oz a year earlier, while total cash costs rose to $1 386/oz from $1 137/oz. Gold all-in sustaining costs (AISC) increased to $1 911/oz from $1 538/oz, largely owing to lower processed grades, higher royalties and elevated diesel prices.
Copper cost of sales increased to $3.65/lb, with C1 cash costs reaching $2.76/lb and AISC rising to $4.52/lb. Higher diesel prices and local currency appreciation, particularly affecting labour costs, contributed to the increases.
Barrick’s 2026 guidance assumes an oil price of $70/bl. The company estimates that every $10/bl change in oil prices affects diesel-related costs by approximately $12/oz across its gold operations and $0.04/lb across its copper operations.
The company also reduced its total attributable capital expenditure guidance to a range of $3.8-billion to $4.2-billion, reflecting lower anticipated spending on the Reko Diq copper/gold project.
Barrick owns 50% of Reko Diq, one of the world’s largest undeveloped copper/gold deposits, while three federal state-owned enterprises hold 25%. The remaining 25% is held by the government of Balochistan, comprising a 15% fully funded interest and a 10% free-carried interest.
With Lumwana’s expansion progressing towards its scheduled completion, Barrick is positioning the Zambian operation for a substantial increase in copper output from 2028.