Canadian Miner Redirects Investment to Zambia With $2 Billion Amid Mali Strain

In the vibrant landscape of Zambia’s economic future, Barrick Gold Corporation, a renowned Canadian multinational, is embarking on an ambitious journey. With a formidable investment of $2 billion, the company is significantly expanding the Lumwana copper mine, a move that not only positions Zambia as a pivotal player in the global copper market but also enhances the industrial landscape locally.

This expansive project, already underway, has set an impressive goal: doubling the annual copper output at Lumwana to a remarkable 240,000 tonnes. This will be achieved through the establishment of a new processing plant, designed to efficiently manage an astounding 50 million tonnes of ore each year. Have you ever wondered what it takes to extract such volumes of ore sustainably?

Moreover, the initiative includes the construction of new electrical lines in collaboration with Zambia’s national power company. This vital infrastructure will not just support operational needs but also lay the groundwork for broader economic sustainability and local energy independence.

During a recent visit to Lusaka, Zambia’s capital, Barrick Gold’s CEO, Mark Bristow, articulated the significance of this expansive transformation. “This isn’t merely about operational enhancement,” he remarked. “It’s a powerful commitment to Zambia’s economic trajectory and growth potential.” It’s a sentiment that resonates deeply; as nations evolve industrially, their investments in local communities shape futures.

Reflecting on the history of the Lumwana mine, Bristow noted, “When we reviewed Lumwana in 2019, it was high-cost and underperforming. Today, it stands as a burgeoning force in African copper mining.” His words echo the essence of perseverance and strategic thinking. Change is often slow, but with focused effort, extraordinary transformations can occur.

As the expansion accelerates, Bristow added, “With this expansion gaining momentum, Lumwana is positioning itself among the world’s hefty and strategically vital copper mines. It’s a driver of growth for both Zambia and Barrick.” This kind of insight urges us to consider: What does it mean for a country to find its footing as a global resource leader?

Barrick Gold’s dedication to Zambia extends beyond mere financial input. Since assuming control of the Lumwana mine, the company has infused over $4 billion into the Zambian economy—this includes taxes, wages, and contracts with local businesses. In the first quarter of 2025 alone, an impressive 81% of the mine’s expenditures, equating to roughly $177 million, was directed to Zambian suppliers. It’s crucial to remember that nearly all of Lumwana’s 12,000 employees are Zambian, with almost half hailing from surrounding communities. In an age where local employment can feel like a distant goal, this statistic serves as a beacon of hope.

To further fortify its commitment, the company is constructing new facilities, including the Manyama township and a training center that aims to empower Zambians with essential mining and technical skills. In addition, a regional airstrip is under development. These undertakings align perfectly with Zambia’s long-term vision stipulated in its Mining and Minerals 2031 policy. They ask a compelling question: Can a nation grow sustainably while nurturing its local resources and human capital?

Integral to Barrick’s strategy is a steadfast commitment to environmental sustainability. The company is actively collaborating with local leaders and Zambia’s Forestry Department on an expansive forest protection project, which aims to cover up to 300,000 hectares. This initiative underscores their commitment to not just protect the environment but also enhance local livelihoods while preparing for potential future carbon credits.

Bristow asserts, “Lumwana is becoming a flagship for sustainable copper mining. It exemplifies how a world-class operation can cultivate an industrial ecosystem, safeguard the environment, and expand economic possibilities for local communities.” His words resonate with the ethos of many companies today. Isn’t it empowering to think of industries that make profit while also prioritizing planet and people?

Mali’s Dispute with Barrick

However, not all landscapes remain smooth for Barrick. The company is embroiled in a dispute with the Malian government stemming from a new 2023 mining code that attempts to retroactively grant the state up to a 50% stake in mining projects. Barrick disputes this, regarding it as a violation of their existing agreements linked to the Loulo–Gounkoto mine.

As tensions rise, the situation escalated when a military helicopter seized a tonne of gold—valued at approximately $107 million—amidst earlier seizures and export blocks. In response, Barrick has initiated international arbitration, alleging Mali of breaching investment treaties. This unfolding scenario serves as a stark reminder of the rising resource nationalism rippling through military-led states across Africa.

Barrick’s investment in Zambia emphasizes the continent’s escalating role in the global energy transition. Copper’s demand is swelling, propelled by electric vehicles and green technologies. With no significant environmental mishaps recorded and strong quarterly performance, Lumwana is not just increasing production; it is solidifying its legacy across Zambia and the broader African region.

As we reflect on these developments, one can’t help but wonder how this unfolding narrative will shape the future of mining in Africa. Is it the beginning of a new era where companies and communities thrive together?

Edited By Ali Musa
Axadle Times International – Monitoring.