Home Economy Barrick Gold to sell Zambian copper mine due to low expansion potential

Barrick Gold to sell Zambian copper mine due to low expansion potential

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The Zambian copper mine in Lumwana owned by Barrick Gold Corporation has been included in the group’s list of facilities for a potential sale.

According to analytics, the shaft has been showing low rates in production and little to zero expansion potential, so the BGC, Africa ’s second-biggest copper producer, want to sell it, mass media reports stated.

Chinese businesses, including Aluminum Corp of China, known as Chinalco, and China Minmetals Corporation are among the potential buyers. Both organisations have been seeking growth on Africa’s markets, so such deals are considered to be valuable for them.

However, it is expected that the deal will be not so easy due to the new Zambian tax politics as they now also include a royalty on copper production that increases as commodity prices rise.

The total value of the deal is approximately $500 million.

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