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October 14, 2019updated 05 Jun 2020 12:08pm

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

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.

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.

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As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
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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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Free Report
img

Dig deeper with our mining equipment forecasts

As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
by GlobalData
Enter your details here to receive your free Report.

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