Diversified miner Barrick Gold Corporation’s Lumwana copper mine has bought about $4.3-billion in goods and services from Zambian-registered businesses since it went into production, in line with Barrick’s local procurement and economic development practices.
Barrick president and CE Mark Bristow says Lumwana’s local procurement expenditure last year was $432-million out of a total of $520-million, which represents 83% of the mine’s total procurement spend.
Since 2019, when Barrick was reconstituted following its merger with gold miner Randgold Resources, local expenditure has increased every year.
Additionally, all Lumwana’s copper concentrates are delivered to Zambian smelters by a local transporter.
“Our procurement practices prioritise local companies, followed by those from the larger Zambian region. We only use international suppliers when the goods and services we require are not available in the country,” Bristow says.
In total, since Barrick assumed operatorship in 2011, Lumwana has contributed more than $8.2-billion to Zambia’s economy in the form of royalties and taxes, salaries and goods and services.
Last year, Barrick launched the Business Accelerator Program, aimed at building business capacity for Zambian contractors in its mining supply chain.
The programme is also to support businesses in effecting their own growth plans and diversifying their markets to become independent and sustainable beyond Lumwana’s life-of-mine.
Barrick is also committed to local employment, with 99.3% of Lumwana’s employees and 98% of its contractors comprising nationals.
“Prioritising the provision of jobs and business opportunities for our local communities and host countries is critical to the development of our social licence to operate.
“Local employees and business partners also bring diversity to our operations and business and help us better understand customs, cultural practices and the impact our activities have on host communities,” concludes Bristow.