Rothshild family owned
Rio Tinto is looking to take over Equinox Minerals, which has mining operations in Zambia like Lumwana Copper Mine. Nat Rothschild is also
a non-executive director of Barrick Gold, to which the Zambian government sold it's share in Equinox. He also owns half a billion dollar worth of shares in Glencore AG, which owns Mopani Mine, and was caught evading taxes.
Rio Tinto Eyes Equinox Minerals
Published on February 16, 2011 at 5:37 PM
By Joel Scanlon
Rio Tinto may be focusing on Equinox Minerals as a takeover target. The mining giant is said to be looking at small to medium sized new acquisitions may be happy to get the pure copper play as per analysts at the Royal Bank of Scotland.
Equinox Minerals is a mining and exploration company with corporate offices in Perth, Australia and Toronto, Canada. It has operations in Peru, Australia and Zambia but most of its current activity is concentrated in Zambia where through subsidiary the Lumwana Mining Company, it operates mines in the Zambian copperbelt region.
In a research note Lyndon Fagan said that Equinox was one of the few pure copper plays out there and that it would be a logical fit for the diversified, British-Australian, multinational mining and resources group.
With the decline in copper grades across Rio Tinto mining operations worldwide, Mr Fagan said that the company would need more copper projects to maintain its production levels. Since its bid for Riversdale Mining, the company is obviously open to investing in Africa to further its growth prospects.
Equinox is a dual listed company with is found on both the Australian and Toronto Stock Exchanges. It will accord Rio Tinto a foothold into Zambia with its large Lumwana mine. It will also give them a significant land position to undertake further exploration as per the client note written by Mr Fagan.
Zambia is also seen as a lower risk region compared to Mozambique which is where Riversdale Mining is located. This means that Equinox is an easier acquisition from a geopolitical risk point of view for Rio Tinto as well.
Labels: EQUINOX
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ZCCM-IH invests $170m in Equinox
By Chiwoyu Sinyangwe
Wed 28 Mar. 2012, 12:59 CAT
ZCCM-IH in the first six months of 2011 received K87.3 billion (about US $18.4 million) in dividends from four of the over eight foreign owned mines it holds a stake in. And ZCCM-IH says it has invested the US $170 million received from the sale of 2.28 per cent stake in Equinox Minerals Ltd, the former parent company of Lumwana Mines.
ZCCM - Investment Holdings (ZCCM-IH) is a company formed and majority-owned by the Zambian government to retain minority equity in the privatised and current foreign owned mines. Meanwhile, ZCCM-IH fears the current prolonged debt crisis in Europe will hurt international copper prices.
During the first six months ending September 2011, ZCCM - IH received in dividends K35.7 billion (about US $7. 6 million) from Kansanshi Mines, K23.6 billion (about US $5, million) from Konkola Copper Mines, K19.9 billion (about US $4. 2 million) from Chibuluma Mines and K8 billion (about US $1. 6 million) from Copperbelt Energy Corporation.
Other companies in which ZCCM-IH holds a stake include 10 per cent each in Mopani Copper Mines and Chambishi Metals, 15 per cent each in Luanshya Copper Mines and NFC Africa.
And ZCCM-IH said it used US $170 million it got from the sale of 2.28 per cent stake in Equinox Minerals Ltd to invest in new and ongoing mining projects.
"The funds from the sale of shares in Equinox Minerals Limited have since been invested in partly Maamba Collieries Limited as an equity contribution in order to maintain the equity shareholding of ZCCM-IH at 35 per cent," stated company secretary Chabby Chabala.
"Part of the money has also been used as equity contribution to in Konkola North Copper (Konnoco) project which…is a start up copper mining project. ZCCM-IH exercised an option and obtained 20 per cent shareholding in Konnoco, of which five per cent is free-carry while the additional 15 per cent will require that ZCCM-IH contributes cash to the development of the mine. The shareholders agreement, the financing agreements and services agreements relating to Konnoco were signed by ZCCM-IH on 15th September, 2011."
ZCCM-IH stated that it had disbursed a shareholder loan to facilitate the recapitalisation programme for its 100 per cent owned Ndola Lime Company to help lower unit costs of production and strengthen production capacity.
During the same period, the company's operating profit jumped 54 per cent to K785 billion compared to the same period in 2010.
ZCCM-IH which during the year under review made a part payment of US $55 million towards pre-privatisation loans to the government, said it was keenly observing events in the Eurozone.
"Events in the Eurozone are likely to adversely impact global commodity demand and prices," stated ZCCM-IH.
"With lessons from the global financial crisis of 2008, 2009, a number of mining companies have kept a close watch on unit production costs in order to better manage base metal price fluctuations. ZCCM-IH is keenly observing events in the Eurozone and the efforts being made to address them."
Labels: EQUINOX, ZCCM-IH
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5 Equinox board members quit
By Gift Chanda
Mon 06 June 2011, 04:01 CAT
FIVE Equinox Minerals board members resigned on Friday after the Competition and Consumer Protection Commission gave unconditional approval to Barrick Gold’s offer for the company.
The unconditional offer saw the Zambian government agreeing to sell its 2.28 per cent stake in Equinox Minerals Ltd to Barrick Gold Corporation for more than US $160 million at a time neighbouring Zimbabwe was trying to increase shareholding in its mining companies.
Co-founder and chief executive officer Craig Williams, as well as David McAusland, David Mosher, Jim Pantelidis and Tony Reeves stepped down from the board and were replaced by Barrick executives Rick McCreary, Jamie Sokalsky, Kelvin Dushnisky and Rob Krcmarov.
Equinox also announced the board would be reduced from seven directors to six.
Barrick made its C$7.3-billion offer for Equinox in April, trumping an earlier hostile offer from Hong Kong-based Minmetals Resources.
Equinox owns Lumwana Copper Mine in North Western Province and the Jabal Sayid copper/gold project in Saudi Arabia.
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Govt cannot stop Equinox acquisition, says Mwale
By Chiwoyu Sinyangwe
Mon 23 May 2011, 22:30 CAT
MINES minister Maxwell Mwale says Zambia is a liberalised economy that cannot stop Barrick Gold Corporation’s agreed 100 per cent acquisition of Equinox Minerals, owner of Lumwana Mining Company.
On April 25, 2011, Equinox announced an agreement with Barrick Gold Corporation pursuant to which Barrick has agreed, subject to the terms of a support agreement, to make an offer to purchase all outstanding common shares of Equinox by way of negotiated take-over bid.
Barrick, subsequently, commenced its offer to acquire the Equinox common shares on April 26, 2011.
The Equinox board of directors has unanimously recommended that Equinox shareholders “accept” the Barrick offer, and “deposit” their shares under the offer. Competition and Consumer Protection Commission (CCPC) announced last week that Barrick Gold had applied to it seeking approval for its US $7.7 billion takeover of Equinox Minerals which built its prime asset, Lumwana Mining Company at US $1 billion.
CCPC director for consumer and public relations Brian Lingela said the commission had received and was considering an application for the proposed acquisition, the biggest transaction in the country’s mining history.
But Mwale said the government will continue to allow “market forces to continue dictating the economic development of all sectors including mining”. “There will always be some forces at play just like you are free to bid for any company you like,” Mwale said.
According to Lingela, in its investigations, CCPC was carrying out a number of assessment tests to ascertain whether the transaction was likely to result in negative effects in the mining sector, to the consumer, fair trade and the economy in general.
Barrick is a Canadian-based company globally leading in gold mining in terms of production, reserves and market capitalisation and operates gold and copper mines in Canada, United States of America, Peru, and Chile among other areas.
Meanwhile, a latest Equinox technical report has been updated to reflect and support the proposed expansion of the processing plant at Lumwana to a processing capacity of 45 million tonnes per year. The revised technical report also contains an exploration target developed based on 2010 drilling results, previously been disclosed by Equinox last February.
Equinox used the exploration target for pit optimisation studies at a long term copper price of US $2.50 per pound which indicates that a mineral inventory of 1.0 to 1.5 billion tonnes at 0.6 per cent copper could be realised when further drilling is completed.
Labels: EQUINOX, MAXWELL MWALE, NEOLIBERALISM, PRIVATISATION
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COMMENT - The MMD is clearly mismanaging the mining sector and the economy. These deals have to be turned back. It is completely unacceptable that in a country with 40% malnutrition, the government can just get rid of the windfall tax, and be this uninterested in benefiting from the mining industry. Of course they personally benefit from taking bribes to do just that, which is why their excuses make no sense.
Zambia will get K800bn from sale of Equinox, says Simuusa
By Chiwoyu Sinyangwe
Wed 04 May 2011, 16:30 CAT
ZAMBIA will get US$171 million (over K800 billion) from the imminent US$7.68 billion sale of Equinox Minerals, the parent company for Lumwana Mining Company, reveals Wylbur Simuusa. And Simuusa says President Rupiah Banda was celebrating deprivation of Zambians by ground-breaking a large-scale Trident mine wholly-owned by foreigners.
Simuusa, who is Patriotic Front chairman for mines, said
Zambia’s low stake in Lumwana Mining Company would result in the country getting a paltry amount from the country’s record transaction in the mining sector. Barrick Gold agreed to buy Equinox Minerals, whose Lumwana Mining Company, built for over US$1 billion in Solwezi is Equinox Mineral’s primary asset while other operations include a copper development project in Saudi Arabia.
“Hon Maxwell Mwale mines minister should explain what’s going to be the future of ZCCM-IH’s stake in the new company after Barrick Gold takes over Lumwana Equinox Minerals,” said Simuusa, who is also Nchanga Constituency member of parliament. “Because as things stand now, we are only going to receive about US $171 million from this deal but our shareholding might be diluted. So, let Mwale explain.”
Both finance minister Dr Situmbeko Musokotwane and Mwale could not be reached by press time as their mobile phones went unanswered. Simuusa also regretted that the government position on the transaction of the Lumwana magnitude remained unclear despite the country hosting the mines.
And Simuusa says President Banda was worsening the poverty levels in the country by creating an environment that exclusively favoured growth of the foreign capital. Simuusa regretted that President Banda went to celebrate the opening of the new mine with little benefits for the country.
During the official opening of the over US$1 billion First Quantum Minerals Trident mining in North Western Province, a project to be heralded by Kalumbila Mines in Solwezi, President Banda said it was gratifying that the mining sector had become viable again and contributing significantly to the economic growth of the country. President Banda hailed the Trident project as a boost to economic and social wellbeing of people in Solwezi and the country as a whole.
But Simuusa said President Banda was depriving the Zambian people of their birthright by abrogating the Zambian laws on mining which stipulated that Zambia, through ZCCM-IH needed to retain 35 per cent stake in new mining projects. “What was the President groundbreaking and celebrating about when we don’t have a single share in Trident,” said Simuusa.
“In the absence of the windfall tax, and the in view of the projected high copper prices, the future is that we should start increasing our stake in these mines, especially new ones and in that way, we will be benefiting from higher copper prices in the future, that’s more pertinent. But there you have the President celebrating where we are losing out. And since the shareholding is not being handled properly, the foreigners in the end will get everything while we will be left yawning and quarrelling among ourselves. So, the celebration by the President doesn’t make sense.”
Labels: EQUINOX, FIRST QUANTUM MINING, MAXWELL MWALE, PF, SITUMBEKO MUSOKOTWANE, WYLBUR SIMUUSA, ZCCM-IH
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Barrick Announces Agreement to Acquire Equinox
04/25/2011
C$8.15 per share cash offer recommended by Equinox Board
All amounts expressed in US$ unless otherwise indicated
Highlights
Equinox realizes compelling value
* Equinox signs support agreement with Barrick for C$8.15 per share all-cash recommended offer
* 30% premium based on Equinox’s closing share price on the Toronto Stock Exchange on February 25, 2011 (the last trading day before announcement of Equinox’s bid for Lundin)
* superior offer representing a 16% premium to the value of the proposed Minmetals offer
* no financing condition; Barrick has sufficient cash and committed financing in place to fund the acquisition
* unanimously recommended by Equinox’s Board of Directors
* Equinox will withdraw its bid for Lundin
Cash flow and earnings accretive for Barrick shareholders
* proven, producing mine with strong growth potential
* utilizes Barrick’s balance sheet capacity
* historically low interest rates on debt financing
The addition of the high-quality, long-life Lumwana asset
* long mine life in a mining friendly jurisdiction
* provides entry into highly prospective Zambian copper belt
Consistent with Barrick’s strategy of increasing gold and copper reserves through exploration and acquisitions
* attractive supply and demand fundamentals for copper for the foreseeable future
* 5.7 billion pounds of copper reserves, including 4.5 billion pounds of copper reserves at Lumwana and 1.2 billion pounds of copper reserves at Jabal Sayid, plus an additional 5.5 billion pounds of inferred copper resources at Lumwana1
* scarcity of opportunities of this size and quality
* maintains gold exposure per share and enhances copper leverage per share
* financial flexibility remains to fund internal growth projects
Barrick Gold Corporation (NYSE: ABX)(TSX: ABX) ("Barrick" or "the Company") announced today that it has entered into a support agreement with Equinox Minerals Limited (TSX: EQN)(ASX: EQN)("Equinox") for Barrick to acquire, through an all-cash offer, all of the issued and outstanding common shares of Equinox (including the shares represented by Equinox's CHESS Depositary Interests) by way of a friendly take-over offer (the "Offer"). The Offer is for C$8.15 per Equinox share in cash, or a total of approximately C$7.3 billion. The Offer represents a 30% premium based on Equinox's closing share price on the Toronto Stock Exchange on February 25, 2011 (the last trading day before Equinox announced its intention to make a take-over bid for the common shares of Lundin Mining Corporation). The Offer also represents a 16% premium over the per share price under the offer for Equinox proposed by Minmetals Resources Ltd. on April 3, 2011 (which offer has not yet commenced).
Aaron Regent, President and CEO of Barrick said: "The acquisition of Equinox would add a high-quality, long-life asset to our portfolio and is consistent with our strategy of increasing gold and copper reserves through exploration and acquisitions. The transaction is expected to be immediately accretive to cash flow and earnings on a per share basis. It does not dilute our shareholders' gold exposure per share, and it enhances copper exposure and leverage per share in a strong copper price environment. Combined with our Zaldivar mine and Cerro Casale project in Chile, this acquisition would position Barrick with significant production growth potential in two of the most prolific copper-producing regions of the world. This will be in addition to our targeted growth in annual gold production to 9 million ounces within the next five years."
The Board of Directors of Equinox, after consultation with its financial and legal advisors, has unanimously approved entering into the support agreement and recommends that Equinox shareholders tender to the Offer. Each of CIBC World Markets Inc., Goldman Sachs & Co., and TD Securities Inc., the financial advisors to Equinox, has provided a verbal opinion to the effect that, as of the date of such opinions and subject to the assumptions, limitations, and qualifications stated in such opinions, the consideration proposed to be paid to the holders of Equinox common shares (other than Barrick and its affiliates) pursuant to the Offer is fair from a financial point of view to such holders.
Craig Williams, President and CEO of Equinox said: "We are very pleased to support this Offer. The Offer allows our shareholders to realize immediate value and also positions our operations and employees as part of a world class mining company. We believe this Offer is superior to the public proposal made by Minmetals in terms of certainty and value. Given the immediate value creation opportunity, we are recommending our shareholders tender to the Barrick Offer."
The support agreement between Barrick and Equinox provides for, among other things, a non-solicitation covenant on the part of Equinox subject to customary "fiduciary out" provisions, a right in favor of Barrick to match any superior proposal and a payment to Barrick of a termination fee of C$250 million in certain circumstances, including if Equinox accepts a superior proposal.
The Offer is not subject to a financing condition. Barrick has sufficient cash resources and committed financing to fund this acquisition. The $5.0 billion financing is comprised of a bridge loan and a revolving credit facility underwritten by RBC Capital Markets and Morgan Stanley Senior Funding and is in addition to Barrick's existing credit facility of $1.5 billion and cash balance of about $4.0 billion as at December 31, 2010.
The Offer, which will be made through a subsidiary of Barrick, is expected to commence on April 26, 2011 and a take-over bid circular and related documents will be mailed to shareholders in accordance with applicable laws (all subject to the terms and conditions of the support agreement). The Offer will be open for acceptance for a period of not less than 35 days from its commencement and will be conditional upon, among other things, valid acceptances of the Offer in respect of shares representing (together with shares owned by Barrick) not less than 66 2/3% of the Equinox shares on a fully diluted basis. In addition, the Offer will be subject to certain customary conditions, including receipt of relevant regulatory approvals and the absence of a material adverse change with respect to Equinox. Once the 66 2/3% acceptance level is met, Barrick intends to take steps available to it under applicable law to acquire any outstanding Equinox shares. The Company currently owns 18.2 million shares of Equinox, representing about 2% of its shares on a fully diluted basis.
Morgan Stanley & Co. Incorporated and RBC Capital Markets are acting as financial advisors to Barrick and Ogilvy Renault LLP, Sullivan & Cromwell LLP and Clayton Utz are providing legal advice. CIBC World Markets Inc., Goldman Sachs & Co., and TD Securities Inc. are acting as financial advisors to Equinox and Osler, Hoskin & Harcourt LLP is providing legal advice.
1 Reserves and resources as reported in Equinox's 2010 Annual Information Form. Lumwana has a global copper resource, at a 0.2% copper cut-off grade, of 322 million tonnes at 0.73% copper for 5.2 billion pounds (measured and indicated) and 561 million tonnes at 0.63% copper for 7.8 billion pounds (inferred). From the global resource, a proven and probable reserve of 299 million tonnes at 0.68% copper for 4.5 billion pounds has been defined. Jabal Sayid (Lode 2 + Lode 4) has a global copper resource, at a 0.8% copper cut-off grade, of 26 million tonnes at 2.5% copper for 1.4 billion pounds (measured and indicated) and 5.1 million tonnes at 1.5% copper for 172 million pounds (inferred). From the global resource, a proven and probable reserve of 24.4 million tonnes at 2.2% copper for 1.2 billion pounds has been defined.
Conference call and webcast
Barrick will host an analyst and investor conference call and webcast on Monday, April 25 at 9:00 am Canadian/US Eastern Time, 9:00 pm Perth time.
* North American callers dial: 800-926-7563
* International callers dial: 212-231-2922
A live webcast of the Conference Call will be accessible on Barrick's website at www.barrick.com.
The Conference Call will be available for replay until May 2, 2011 by calling 800-558-5253 for North American callers and for International callers, 416-626-4100, Reservation #21521912.
This press release does not constitute an offer to buy or an invitation to sell, or the solicitation of an offer to buy or an invitation to sell, any of the securities of Equinox. Such an offer may only be made pursuant to an offer and take-over bid circular filed with the securities regulatory authorities in Canada. Furthermore, the information contained in this press release does not constitute financial product advice. It has been prepared without reference to the investment objectives, financial situation, taxation situation and particular needs of any individual Equinox shareholder. Equinox shareholders should consider consulting with their investment, financial, taxation or other professional advisor before taking any action in relation to their investment in Equinox.
Notice to Shareholders in the United States
The Offer is made in the United States with respect to securities of a Canadian foreign private issuer in accordance with Canadian tender offer rules. Shareholders resident in the United States should be aware that such requirements might be different from those of the United States applicable to tender offers under the United States Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
About Barrick
Barrick Gold Corporation is a leading Toronto-based mining company with a portfolio of 25 operating mines and six projects on four continents. Barrick trades on the Toronto and New York Stock Exchanges and employs more than 20,000 people worldwide. The Company was ranked as a global leader in social and environmental responsibility for the third consecutive year in 2010 by the Dow Jones Sustainability World Index. Barrick is also listed on the NASDAQ Global Sustainability Index of the world's top 100 companies.
About Equinox
Equinox Minerals Limited is an international mining company dual-listed on the Toronto and Australian Stock Exchanges.
Equinox has two primary assets, the Lumwana mine in Zambia (100%-owned) and the Jabal Sayid development project in Saudi Arabia (70%-owned; Equinox is in the process of acquiring the remaining 30%).
Lumwana, located in the highly prospective Zambian copper belt, began production in 2008. It hosts copper reserves of 4.5 billion pounds and inferred copper resources of 5.5 billion pounds. Lumwana produced 323 million pounds of copper in 2010 and there is future potential to expand production.
A feasibility study on the Jabal Sayid project was completed in 2009. The project has copper reserves of 1.2 billion pounds. Average life of mine annual production at Jabal Sayid is expected to be over 100 million pounds of copper.
For information on Equinox please refer to Equinox's website at www.equinoxminerals.com.
BARRICK INVESTOR CONTACT:
Deni Nicoski
Vice President, Investor Relations
(416) 307-7410
dnicoski@barrick.com BARRICK MEDIA CONTACT:
Andy Lloyd
Manager, Communications
(416) 307-7414
alloyd@barrick.com
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information contained in this press release, including any information as to our strategy, projects, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "will", "anticipate", "contemplate", "target", "plan", "continue", "budget", "may", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of gold, copper or certain other commodities (such as fuel and electricity); inaccuracies or material omissions in Equinox's publicly available information or the failure by Equinox to disclose events or facts which may have occurred or which may affect the significance or accuracy of any such information; the ability of the Company to complete or successfully integrate an announced acquisition proposal; legislative, political or economic developments in the United States, Canada, Zambia, Saudi Arabia or elsewhere; operating or technical difficulties in connection with mining or development activities; availability and costs associated with mining inputs and labor; the risks involved in the exploration, development and mining business. Certain of these factors are discussed in greater detail in the Company's most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.
Except as otherwise indicated, the information concerning Equinox contained in this press release has been taken from or is based upon Equinox's and other publicly available documents and records on file with Canadian securities regulatory authorities and other public sources. Neither Barrick nor any of its directors or officers assumes any responsibility for the accuracy or completeness of such information, or for any failure by Equinox to disclose events or facts which may have occurred or which may affect the significance or accuracy of any such information, but which are unknown to Barrick.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, further events or otherwise, except as required by applicable law.
Labels: EQUINOX, FDI, MINING, PRIVATISATION
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Equinox president notes misinformation on uranium mining
By Chiwoyu Sinyangwe
Wed 01 Sep. 2010, 15:10 CAT
EQUINOX Minerals Limited president Graig Williams has said there is a campaign of disinformation on uranium mining in the country. Equinox Minerals Limited is the parent company for Lumwana Mine which is currently stockpiling uranium mined as a by-product of copper.
So far, about 4.2 million tonnes of uranium has been stockpiled at Lumwana mine and exports are expected to commence in 2013 when international uranium prices make export of the energy metal used in nuclear reactors commercially viable.
In an interview at the cocktail held in honour of Equinox Minerals Limited board that visited the country, Williams said the uranium at Lumwana mine was being treated in accordance with international standards as well as set out guidelines by the Environmental Council of Zambia (ECZ).
“We are mining the uranium within the big copper ore body and the area is quite small,” Williams said.
“As we mine the copper, we also mine that uranium ore and stockpile it. We have designed the plant to extract that uranium…we are ready to start to produce uranium, we will put in place off-take arrangements as marketing arrangements. But for now the uranium price internationally is not sufficiently attractive but I would think that within two - three years, it should improve. So, at that time, we will seek the licence from the government to export uranium. We have a licence in place to mine and process uranium.”
Williams said mining uranium was not dangerous to the country’s environment or people living near the mine.
“We have recently heard in Zambia that mining uranium is dangerous…the fact is that the level of uranium we are mining is very low and so, environmental, health and safety risk is very low and we have very rigorous programme in place to ensure the safety of our people and the community. That is not an issue,” said Williams.
“I think there has been a campaign of disinformation on uranium that is not based on fact. The fact is that we have gone through a vigorous environmental approval by Environmental Council of Zambia and we have applied international standards and our project has got all that.”
With the current estimated ore body of 900 million tonnes of copper resource at Lumwana mine, uranium comprises about eight million tonnes.
And mines minister Maxwell Mwale said the government will not reintroduce the windfall tax on the mining sector to protect expansion and support the development of new mines.
“I would like to assure the equinox board that under the leadership of President Rupiah Bwezani Banda, there will be no windfall tax,” said Mwale. “We would like to see increased activity in the industry.”
Labels: EQUINOX, URANIUM
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Equinox announces 37% rise in copper production
By Mutale Kapekele
Fri 09 Apr. 2010, 04:00 CAT
Equinox Minerals, the holding company of Lumwana Mine has announced a 37 per cent increase in copper production in the first quarter of this year as compared to the same period in 2009.
In a statement released by Equinox Vice President Kevin van Niekerk yesterday, Lumwana Mine is said to have improved its production and mined material by 70 per cent in preliminary production.
“Production for Q1-2010 totalled 30,471 tonnes (67 M lbs) of copper in concentrate, a 37 per cent increase when compared with the corresponding 2009 period,” Niekerk stated.
“The Company also reported significant improvements in every area of production relative to Q1-2009 with both total material mined and ore mined improving by about 70 per cent.”
He stated that Equinox was pleased with the result as they were achieved at the time when the country was experiencing heavy rains.
“Following on from the steady production growth through 2009, the Q1-2010 results are particularly pleasing as they were achieved during the wettest part of the year, reflecting a solid continuation of mine and mill ramp up at Lumwana,” he stated.
“These results establish a sound base for Equinox to meet its full year 2010 guidance of 135,000 tonnes (300 Mlbs) of copper.”
Equinox president and chief executive officer Craig Williams stated that the first quarter results were “solid for the team, reflecting the continuation of ramp up and placing us on track to deliver production targets for 2010 of 135,000 tonnes of copper in concentrate."
Labels: COPPER, CRAIG WILLIAMS, EQUINOX
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Equinox Minerals secures $658m to clear Lumwana debt
By Chiwoyu Sinyangwe
Thu 04 Feb. 2010, 04:00 CAT
EQUINOX Minerals Limited has secured up to US $658 million funding from global banks including state-owned Commercial Bank of China to pay off Lumwana Copper Mine debt.
The debt repayment was being seen as a plan by Lumwana Copper Mine to increase the firm’s production ahead of anticipated increases in copper demand.
Equinox, which is dual-listed in Canada and Australia, yesterday stated that it had secured about US $355.4 million corporate loan from Chinese biggest bank, Commercial Bank of China, BNP Paribas, Standard Bank and Standard Chartered Bank.
The loan credit was secured in Australian dollars and the news sent the Equinox Minerals Limited's local shares up by more than six per cent to close at US $3.79.
The funding is expected to be finalised next month and can be increased by up to 180 million Australian dollars if approved by the lenders.
Equinox stated that it would use the funds to repay about US $517 million debt facility signed to develop Lumwana in 2006, which at September 30 last year had about US $319 million owing.
Commenting on the credit line, Equinox Minerals Limited chief executive Craig Williams said: “Refinancing our existing project debt facilities with a corporate loan reflects our transition from a developer to an operator of a world-class mining asset.”
Following the credit line, Equinox Minerals Limited would incur break fees from its existing debt facilities of between US $13 million and US $17.7 million.
Macquarie resource analysts said in a recent note to clients that for pure leverage to a rare, large-scale development project, “we retain Equinox Minerals as our number one pick."
But Equinox has had trouble ramping up Lumwana Copper Mine despite a 23 per cent increase in production in the December quarter last year from the previous quarter.
"The mining team is working on a number of strategies to improve performance and mine productivity," Lumwana Copper Mine stated in its December production results.
Lumwana Copper Mine recorded about US $136.9 million loss over the first nine months of last year.
Labels: EQUINOX, LUMWANA MINING COMPANY
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Lumwana Mining replaces MD
By Kabanda Chulu in Lusaka and Creavat Chituta in Solwezi
Sat 31 Oct. 2009, 04:00 CAT
LUMWANA Mining Company (LMC) has appointed Adam Wright as its new managing director replacing Harry Michael who is leaving the company next month after developing it from a greenfield project to become Zambia’s single largest investment and Africa’s biggest copper producer.
Announcing the appointment yesterday, Lumwana’s holding company, Equinox Minerals president Craig Williams stated that the company was looking forward to working with Wright in the operational phase at Lumwana in order to drive the mine towards realising its full potential.
“We are very excited that Adam Wright has joined the Equinox team. Adam is a well regarded and highly experienced mining professional with expertise that will provide great benefit to the operational ramp up of the Lumwana copper mine,” stated Williams.
“Harry Michael has played a key role in building Lumwana over the last five years during a very challenging period for the company through the transition from developer to producer. I thank Harry for his outstanding contribution. We look forward to working with Adam in the operational phase at Lumwana in driving the mine towards realising its full potential.”
And Michael has urged newly-graduated multi-skills vocation trainees to utilise their skills acquired from the training to set up business and support their families.
Speaking in Solwezi during the graduation ceremony of 174 LCM-sponsored local community multi-skills vocation graduands who received their certificates after undergoing a sustainability training programme held at Lumwana estate, Michael said trainees should not only hang their certificates in homes, but apply skills acquired to improve their livelihood and become employers in future.
He advised graduands to take advantage of the opportunity to increase their production and improve their standard of living through baking; poultry farming and meat inspection, maize milling, handcrafts and others.
Meanwhile, Solwezi mayor Peter Kikatula commended LCM for its outstanding commitment to the development of the local community in the district.
Labels: ADAM WRIGHT, EQUINOX, HARRY MICHAEL, LUMWANA MINING COMPANY
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Equinox Minerals records rise in production
Written by Nchima Nchito Jr
Thursday, October 08, 2009 4:41:14 PM
EQUINOX Minerals has recorded copper production of 28,111 tonnes during the third quarter at its flagship mine Lumwana, according to preliminary output figures.
The performance was an improvement on both the first (
22,263 tonnes) and second (
24,413 tonnes) quarters of 2009, after the company
improved mine truck and shovel productivity and increased its
equipment fleet. According to Mining Weekly, Equinox described this as a good development for the mine.
“We continue to ramp up, predominantly focusing on improving material movement as our large Lumwana copper process plant has already demonstrated capacity to operate at and above design throughput levels,” Equinox chief executive Craig Williams said.
The firm said it had stepped up its measures in preparation for the west season, following its experiences last year.
Diversion channels to control surface water ingress into the pit have been constructed, substantial sumps excavated for the collection of in-pit water and pumping capacity has been doubled since 2008.
All main ramps and roads have been also sheeted and surfaced with bitumen emulsion to improve road conditions, particularly during wet periods, Equinox said.
“Management believes that based on the work underway in preparation for the forthcoming wet season, a continuing focus on mining fleet productivity, the commissioning of further trolley-assist infrastructure to help improve truck cycle times and the increasing exposure of new sulphide ore zones, that the fourth quarter of 2009, subject to wet season conditions, should demonstrate additional improvement on quarterly production to date,” stated Equinox.
Full-year output is now forecast at about 110,000 tonnes of copper, which is at the bottom end of the range provided in August.
Labels: COPPER, EQUINOX
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Equinox Minerals records rise in production
Written by Nchima Nchito Jr
Tuesday, October 06, 2009 7:38:50 AM
EQUINOX Minerals has recorded copper production of
28,111 tonnes during the
third quarter at its flagship mine Lumwana, according to preliminary output figures.
The performance was an improvement on both the first (22,263 tonnes) and second (24,413 tonnes) quarters of 2009, after the company improved mine truck and shovel productivity and increased its equipment fleet. According to Mining Weekly, Equinox described this as a good development for the mine.
“We continue to ramp up, predominantly focusing on improving material movement as our large Lumwana copper process plant has already demonstrated capacity to operate at and above design throughput levels,” Equinox chief executive Craig Williams said.
The firm said it had stepped up its measures in preparation for the west season, following its experiences last year.
Diversion channels to control surface water ingress into the pit have been constructed, substantial sumps excavated for the collection of in-pit water and pumping capacity has been doubled since 2008.
All main ramps and roads have been also sheeted and surfaced with bitumen emulsion to improve road conditions, particularly during wet periods, Equinox said.
“Management believes that based on the work underway in preparation for the forthcoming wet season, a continuing focus on mining fleet productivity, the commissioning of further trolley-assist infrastructure to help improve truck cycle times and the increasing exposure of new sulphide ore zones, that the fourth quarter of 2009, subject to wet season conditions, should demonstrate additional improvement on quarterly production to date,” stated Equinox.
Full-year output is now forecast at about 110,000 tonnes of copper, which is at the bottom end of the range provided in August.
Labels: EQUINOX, LUMWANA MINING COMPANY
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Katuka accuses govt of stifling Equinox’s development
Written by Chiwoyu Sinyangwe
Friday, June 26, 2009 4:01:42 PM
THE parliamentary committee on government assurances chairperson Stephen Katuka yesterday accused the Ministry of Mines of deliberately stifling the growth of Equinox Minerals Limited in North Western Province in preference to Chinese prospecting investors.
Katuka said there was need to allow and support Equinox Minerals Limited’s plans to use the close to US $1 billion Lumwana Mining Company to spread its operation in the province.
He said this when a delegation led by mines permanent secretary Dr Godwin Beene appeared before his committee.
Katuka, who is also United Party for National Development (UPND) Mwinilunga East member of parliament, said there were a lot of irregularities with the issuance of mineral exploration licences with a view to favouring the Chinese.
Katuka dismissed recent statements by the government that some named Chinese minerals investors were planning an estimated US $3.6 billion injection into resource development in North-Western province.
“I don’t see why you should kill a child who is already born just because your wife is about to conceive another baby…,” he said.
Katuka also urged Dr Beene to clean up the many reported cases of corruption allegations at the Ministry of Mines.
In response, Dr Beene explained that Equinox Minerals had reduced on the amount of land under its ownership in line with the new mines and minerals Act which required that no one single entity should possess more than 1, 000 square kilometres of land for exploration purpose.
Dr Beene also assured the committee that he would address the concerns raised regarding the administration of the mining sector in the country.
Labels: EQUINOX, STEPHEN KATUKA
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Lumwana to produce 170,000 tons this year
Written by Kabanda Chulu
Monday, May 11, 2009 11:40:14 PM
LUMWANA Mining Company (LMC) has projected to produce 170,000 tonnes of copper metal in concentrates this year at the
average operating cost of US $1.15 per pound.
And Equinox Minerals, Lunmwana’s holding company, has secured a US $25 million debt facility with FMO Development Funding Institution of Netherlands that would be channeled towards with the development of Lumwana town.
Releasing financial results for the quarter ending March 31 2009 and the expected outlook for the year, Equinox Minerals president Craig Williams last week stated that 23,966 tonnes of copper metal was sold during the quarter.
“During the quarter, 2,877,141 dry metric tonnes of ore producing 57,085 dry metric tonnes of concentrate at an average copper grade of approximately 39 per cent were produced at Lumwana and concentrate deliveries of 63,063 dry metric tonnes were sold to local and international off-takers containing a combined copper metal content of 23,966 tonnes,î Williams stated. ìAs anticipated, the Lumwana has not yet reached ëcommercial productioní and as a result, all copper sales, revenue and operating costs have been capitalised for the first quarter of 2009 but subject to final assessments and we expect that the Lumwana Mine will achieve commercial production from the commencement of the second quarter of 2009.”
Williams stated that Lumwana expected to produce 170,000 tonnes (375 million pounds) of copper metal in concentrates at the average operating cost of US $1.15 per pound for the year.
He stated that abnormally heavy rainfall in March negatively impacted the Lumwana mine, causing the mining and processing operations to be suspended on a number of occasions during the month.
“Within one 24-hour period, an estimated 120 mm of rainfall fell, representing about 10 per cent of the yearís average rainfall with a total of 440mm falling within a 30 day period. This event equated to a greater than one in 100 year incident, occurring within three months of starting the commissioning phase of the mine. Overall, this wet season has been reported in Zambia as being the wettest in 40 years,” Williams stated. “As a consequence, the ramp up of both mine and process operations was interrupted in March, but resumed by the end of the quarter and we continue to have an objective of completing Lumwana ramp up to full production by mid-2009.”
Williams stated there were significant opportunities at the Lumwana project to expand and optimise the concentrator and mine throughput rate and to assess and evaluate the additional near mine deposits discovered to date.
He stated that Equinox had also completed the uranium feasibility study (UFS) investigating the onsite treatment of discrete and high grade uranium mineralisation contained within the Lumwana copper pitshells.
On 14 April 2009, government through Zambia Development Agency (ZDA) approved the establishment of Multi Facility Economic Zone (MFEZ) within the Lumwana Large Scale Mining that would create an investment zone to attract both local and foreign businesses.
“Together with ZDA approval, it is anticipated that government will undertake to support the Lumwana MFEZ by giving explicit protection to Equinox’s cornerstone investments at Lumwana and will also undertake to promote and maintain new and existing investment agreements for businesses within the Lumwana MFEZ,” Williams stated.
The principle of MFEZ developments were incorporated through the ZDA Act of 2006 and its main objective is to catalyse industrial and economic development in the manufacturing sector to enhance domestic and export oriented business.
On the dispute with Zesco Limited over electricity charges, which is in the Lusaka High Court, Williams expressed optimism that the matter could be resolved in a reasonable manner.
Lumwana has since obtained a protective relief action in response to the Notice of Termination initiated by ZESCO and the matter was heard in the Lusaka High Court on March 17, 2009 and again on April 6, 2009 and has subsequently been adjourned by the Lusaka High Court to May 27, 2009, to allow the parties further opportunity to conclude negotiations.
Apart from developing the mines, LMC is also developing the Lumwana town development and with over 500 houses completed to date while commercial and retail developments were advancing and a self-sustaining modern town environment was being developed.
“To support this unique development the Company has established the Lumwana Property Development Company (LPDC) to act as a special purpose vehicle to own and manage the new Lumwana town. LPDC has secured US $25 million debt facility with Nederlandse Financierings-Maatshappij voor Ontwikkelingslanden N.V. (FMO), which is the Dutch government development funding institution, to cover some town infrastructure costs. Drawdown of this facility can commence once Equinox meets a number of conditions precedent,î stated Williams.
Equinox Minerals is an international mining and exploration company with dual listing on the Toronto Stock Exchange and the Australian Securities Exchange.
The Company is focused on operating its flagship and 100 per cent owned Lumwana Copper Mine in Zambia. The Lumwana copper mine is expected to produce an average of 172,000 tonnes per year of copper metal contained in concentrates for the first six years of its 37 year mine life.
Labels: COPPER, EQUINOX, LCM, LUMWANA MINING COMPANY
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Lumwana signs 5-year deal with KCM
Written by Kabanda Chulu
Friday, May 08, 2009 5:30:27 PM
LUMWANA Mining Company (LMC), a subsidiary of Equinox Minerals Limited, has signed a five-year off-take agreement with Konkola Copper Mines (KCM) for the processing of Lumwana copper concentrates.
This agreement comes after Mopani Copper Mines at Mufulira smelter refused to treat Lumwana copper concentrates, claiming that it was not within contract specifications.
Announcing the development yesterday, Equinox Minerals president Craig Williams stated that the agreement would entail annual processing of quantities between 70,000 and 80,000 dry metric tonnes of concentrates from the Lumwana copper mine with an option by mutual agreement for additional annual quantities of Lumwana copper concentrates under the same terms as the agreement.
Williams stated that copper treatment and refining charges under the agreement would be determined annually based on Japanese Smelter Benchmark terms.
“This new long-term off-take agreement with KCM supplements the Lumwana’s existing long-term off-take agreement with Chambishi Copper Smelter Limited and together will account for a large majority of Lumwana’s budgeted production,” stated Williams. “Outside of these agreements, LMC continues to make deliveries of concentrates to international metal traders under short-term contracts providing Equinox with concentrate off-take flexibility.”
KCM is majority owned by Vedanta Resources Plc, a London-listed metals and mining company. The mine recently installed and commissioned the new Nchanga modern smelter with output capacity of 300,000 tonnes per annum of copper anode and 1,850 tonnes per day of sulphuric acid.
KCM also operates the Nchanga and Konkola copper mines, the Nkana Refinery and is developing the Konkola Deep copper mine.
Labels: COPPER, EQUINOX, KCM, LUMWANA MINING COMPANY
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Equinox raises K847 billion
Written by Kabanda Chulu
Thursday, April 23, 2009 8:46:39 PM
EQUINOX Minerals has raised over K847 billion (184 million Canadian dollars) from selling part of its shares to finance expansion opportunities at the Lumwana mining project.
The Lumwana Copper Mines was officially opened last week by President Rupiah Banda. But the mining area also contains high grade deposits of uranium (yellow cake), which the mining company has been stockpiling while waiting for guidelines to commence full production.
Announcing the completion of the equity offering on Friday, Equinox Minerals president Craig Williams stated that a total of 102,235,000 common shares had been oversubscribed at a price of K7,303 (1.80 Canadian dollar) per share.
He stated that the equity offering had resulted in having gross proceeds worth K847.7 billion (184 million Canadian dollars).
ÒEquinox intends to use the net proceeds of the offering to improve its cash position, to evaluate and fund expansion opportunities at the Lumwana Project, to purchase and extinguish an existing net smelter return royalty in connection with the Lumwana Project and for general corporate purposes,Ó stated Williams.
To raise these funds, Equinox, which is listed at both the Toronto and Australian stock exchanges, last month engaged a syndicate of underwriters for the offering that was led by CIBC World Markets Inc. and Goldman Sachs Canada Inc.
Other underwriters included Cormark Securities Inc., GMP Securities L.P., Paradigm Capital Inc., Raymond James Ltd., Macquarie Capital Markets Canada Ltd and UBS Securities Canada Inc.
Labels: EQUINOX, LUMWANA MINING COMPANY
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Equinox halts trading, hopes to raise $124m for Lumwana
Written by Chiwoyu Sinyangwe
Monday, April 20, 2009 4:34:24 AM
EQUINOX Minerals last week announced it has entered a trading halt in order to raise 181 million Australian dollars [US $124 million] from Australian and Canadian investors to go towards the Lumwana Copper Mine.
The trading halt is both at the Canadian and Australian Stock Exchanges where Equinox Minerals is dual-listed. According to market data obtained over the weekend, Equinox Minerals stated that the details of the offering, including the size and price, were yet to be determined.
Market data disclosed that Equinox Minerals planned to use the proceeds to strengthen its capital position, evaluate and fund expansion opportunities at its Lumwana Copper project, and to buy and extinguish a royalty relating to the project.
The move comes just a week after Equinox reorganised its debt facility.
"It had a US $224 million [314 million Australian dollars] payment due at the end of the calendar year, but under the new terms, the payment has been reduced to US $138 million over the same period and that the big payment was US $104 million due in September this year.
"There was no requirement in the refinancing to raise equity, but the chief executive, Craig Williams, said Equinox had opted for it rather then closing out its quite attractive hedge book," the market data read in part.
The flagship Lumwana Copper Mine came on line at the end of last year and is expected to produce 172,000 tonnes of cooper this year, making it a bigger producer than the slimmed down OZ Minerals, which will retain the Prominent Hill mine.
Lumwana Copper Mine, which has a mine life of 37 years, has attracted the interest of many potential suitors, including First Quantum Minerals of Canada, which owns a 19 per cent blocking stake.
Equinox shares have fallen 56 per cent since they traded as high as 5.60 Australian dollars a year ago. Shares last traded at 2.57 Australian dollars.
Last Friday, President Rupiah Banda officially opened Lumwana Copper Mine- Africa's largest open pit mine.
Labels: EQUINOX, LCM
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Zambia needs a pioneering spirit, says Rupiah
Written by Mutuna Chanda and Mulimbi Mulaliki in Solwezi
Sunday, April 19, 2009 4:23:47 AM
PRESIDENT Rupiah Banda has said Zambia needs a pioneering spirit like that of late president Levy Mwanawasa to lift it out of poverty. And Equinox Minerals president Craig Williams said Zambia deserves large investments at the scale of Lumwana but that this could only be done if the government backed its words with actions.
Officially opening Lumwana Copper Mine in Solwezi on Friday, President Banda said he was touched by the passion and the belief that the late president Mwanawasa had for the development of Lumwana mine and that he was proud to see the project that the deceased head of state had nurtured and supported finally come to fruition.
He said the development of Lumwana Copper Mine - Africa's largest copper mine - offered Zambia a number of lessons even as the country went through hard times.
"The first lesson we learn from this project is that for us to succeed, we must have perseverance," President Banda said. "We must have a determined focus to achieve our goals at all costs, even when the going is seemingly tough and challenges seem insurmountable. Many of you may not know but Equinox is the fifth investor that attempted to develop this project and they have succeeded where others did not because they persevered. As a nation we need to take up a mindset of perseverance because when challenges look formidable we can mobilise ourselves and resolutely confront our challenges in order to realise that which others think is unattainable."
He said Equinox managed to secure a US $664 million debt finance package from international banks in 2006 despite the challenges it faced in raising investment funds.
"This underscores the belief the company has in the government and people of Zambia to place such large amounts of money at risk in a greenfield project," President Banda said.
He said the value of mutual trust that developed between the government and Equinox showed the difference between serious investors and those who were abandoning mining operations owing to the fall in copper prices on the world market.
"The second lesson we learn is that success is not easy. During this period of planning and developing the project, colossal amounts of money have been invested in infrastructure, mining facilities, community sustainability and business development programmes. I am informed that in the 12 years of the project development, Equinox have invested over US $1 billion which included the development of a modern new town in Lumwana," he said. "The mutual trust between the government and Equinox has resulted in a world class development that has opened up North Western Province as a new economic hub. This could not have been possible if Equinox were a 'fly-by-night' investor that only takes advantage of economic opportunities when times are good."
President Banda said Zambia would encourage more investors such as Equinox, which had a long term and mutually beneficial view of investment in the country.
"Equinox has also proved to be a genuine partner in uplifting the wellbeing of the citizens through their corporate social responsibility which have included the following community development programmes: the development of a modern new town; a home ownership scheme for the company's employees; training and development programmes for the employees largely recruited from surrounding villages; construction of new classrooms, teachers' houses, health clinics, the first library in the area as well as a women's centre in Mutanda; and the repair and urpgrading of the T5 highway all the way to Mwinilunga. Lumwana has thus created opportunities for local and international investors into this area," President Banda said.
He encouraged Lumwana to consider processing the copper that it mined and add value by selling finished products made in Zambia to the international market.
"My government expects that Equinox will take up this opportunity and continue to grow their investment and explore new avenues," he said. "We expect you to: continue with your exploration programmes; be the first company to produce the famous yellow cake seeing that you have uranium deposits on your mine already; consider investing in metal processing facilities that add value to your metal. My government strongly believes time is ripe for investors like you to consider processing the copper that you mine and add more value by selling finished products made in Zambia to the same international market."
He encouraged the shareholders of Lumwana to engage the government on matters that they considered could destabilise their investment.
"I wish to reiterate the fact that Zambia still remains an attractive investment destination," President Banda said. "You are in Lumwana, in Zambia and we want you to attain your goal and touch your vision in Lumwana. We hire you as our ambassadors. Speak well of Zambia. Tell others in Australia and the world at large how good it is here and encourage them to follow your brave example."
He noted that Lumwana area, which had been backward a few years ago had been turned into a modern economic hub providing employment and facilitating investment.
And Williams urged the government to continue honouring its obligations towards Lumwana and that it could not afford policy delays.
"From the very day we commenced our investment in Zambia in 1996, Equinox had always taken the long-term view because we believe it's the only way to be credible, serious and that investment can be successful," Williams said. "With this in mind it is no wonder that when the international financial crisis gripped the world late last year, while some investors ran at the first sign of trouble, the message we gave you, Your Excellency and the people of Zambia was that we will employ, we will build, we will stay, we will continue to deliver on our obligations."
He said the Lumwana Copper Mine project was not yet successful as this would only be when the shareholders were paid their return on investment.
Williams said Zambia deserved to have more investments like Lumwana.
He praised the financiers of the investment in Lumwana, shareholders in the mine, employees, the government and Zambian community for the support that they rendered in the development of the project.
And director of Lumwana Copper Mine Dr Peter Matoka reflected on how the colonial administration had neglected rural areas such as North Western Province.
He expressed the irony of North Western Province, which was at the bottom of the ladder of Zambia's development, being the host of the largest copper mine in Africa.
The Roan Selection Trust (RST) first identified copper deposits in Lumwana in 1961.
Meanwhile, commissioning Lumwana Zesco 330/33 KV sub station President Banda commended Zesco management for their continued supply of electricity to the mining companies in the country.
President Banda noted that Zesco was capable of generating and distributing power to both the mines and other industries.
Zesco managing director Rhodnie Sisala disclosed that they were in discussion with Lumwana and Kansanshi copper mines to see how they could connect them to the Democratic Republic of Congo (DRC) power interconnector to ensure steady supply of electricity.
And officially opening Lumwana school, President Banda urged parents to monitor the progress of their children.
"It is unfortunate that most African parents think that education is dropping a child at the gate of the school, but my encouragement to you is that you must monitor the progress of your children by asking their teachers concerning your children's performance," he said.
President Banda was also treated to a poetic performance from Lumwana mine primary and pre-school children, outlining their ambitions.
President Banda told one of the children who said he wanted to become a president that he needed to be tough because there were 'fights' during elections.
Labels: EQUINOX, RUPIAH BANDA
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Equinox to revisit uranium plant
Written by Nchima Nchito Jr
Monday, April 06, 2009 3:31:28 PM
EQUINOX Minerals has announced intentions to revisit its plans for the construction of a uranium acid leech plant at the company’s flagship Lumwana Copper Mine in late 2009.
Equinox had late last year decided to place the uranium project on hold until the financial markets recovered and capacity to raise the US $200 million reproduction capital returned.
According to mining weekly, Equinox vice-president for investor relations and corporate development Kevin van Niekerk said the decision was made in spite of the market conditions.
“While the company needs confidence to return to the international markets before the uranium project can progress, certain members of its Lumwana copper project debt syndicate have already expressed interest in funding the project,” he said.
He added that there where a number of reasons for delaying the project.
“At that time, the Zambian government was still implementing appropriate permitting and legislation for the nation’s expected production and export of uranium in accordance with Geneva based International Atomic Energy Agency (IAEA) guidelines,” he said.
Van Niekerk said he understood that this process was complete and that the Zambian government was now ready, willing and able to permit uranium production in country.
Additionally, when the decision was taken to delay the project, Equinox Minerals still awaited approval from the Environmental Council of Zambia of its uranium environmental impact assessment (EIA) needed to permit its plans to international standards.
“I am pleased to report that the EIA for the uranium project was approved late last year,” said Van Niekerk. “Currently, the project is ready to go into front-end engineering and design and now only awaits the Zambian licensing, appropriate uranium off-take arrangements and funding.”
Labels: EQUINOX, URANIUM
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Equinox optimistic govt will honour development deal over Lumwana
Written by Kabanda Chulu
Monday, January 12, 2009 6:23:47 AM
EQUINOX Minerals has expressed optimism that the Zambian government will honour the material components of its development agreement for Lumwana Mining Company which is expected to produce 170,000 tonnes of copper concentrates this year.
And Williams has disclosed that the implementation of the Lumwana uranium project has been suspended to a later date due to difficulties in international project financing as well as low market prices for uranium oxide.
Giving an update on the Lumwana mining project whose final capital expenditure is US $ 814 million and is located in North Western Zambia, Equinox Minerals president Craig Williams yesterday stated that the company had remained confident that the material components of its Development Agreement with the Zambian government would be honoured.
He stated that Equinox would continue working closely with the Zambian government to secure the relevant incentives to ensure that the fundamental economics of Lumwana mines remained intact.
“To that extent, Equinox has recently secured a statutory instrument for exemption of the concentrate export tax recently legislated by government on Lumwana concentrate production that may be exported and Equinox has previously been granted statutory instruments for exemptions from import duty and for excise applicable to fuel and electricity consistent with the Lumwana Development Agreement,” Williams stated. “And Equinox shall continue to work with relevant Ministries in realising the remaining incentives as they may be required and the recent international financial crisis has reinforced the company’s consultative approach with the government as being in the best interests of its shareholders as well as the people of Zambia.”
Williams stated that during construction, the Lumwana project achieved an excellent health and safety record, achieving over five million hours without a lost time injury and resulting in a lost time injury frequency rate of 0.3.
He stated that final preparatory works for processing facilities were completed prior to the commencement of plant wet commissioning on December 3, 2008.
“With production ramp up progressing smoothly, the company estimates production for 2009 to total 170,000 tonnes of copper metal in concentrates at a cash operating cost of US $1.15 per pound. As can be expected, unit production costs are anticipated to be higher in the early part of 2009 until steady state production activities are reached, which is expected by mid-2009 and the final project capital expenditure is estimated at US $814 million that is consistent with previous company guidance,” Williams stated.
He stated that Equinox had hedging in place, comprising forwards and deferred premium puts, for about 30 per cent of its first three years of production.
“The company’s hedging book covering the period from January 2009 to March 2011 currently totals 124,585 tonnes of copper at an average price of US $2.65 per pound of copper (US $2.39 net of put option premiums) and that the hedging contracts between October-December 2008 have matured to realise a net benefit of US $22.4 million for Equinox,” Williams stated. “As an indication of the current value of the remaining hedge book as of January 5, 2009, the mark-to-market value, net of costs, at a copper price of US $1.45 per pound is US$243 million.”
He stated that since commencement of production in early December 2008, Lumwana had processed 1,070,000 dry metric tonnes of ore, producing 20,046 dry metric tonnes of concentrate at an average grade of approximately 40 per cent copper.
“Concentrate deliveries have commenced, with 12,156 tonnes of concentrate dispatched to various smelter destinations on the Copperbelt and concentrate grade and specifications are both in accordance with design expectations, test work and all off take agreements. Throughput rates are now being progressively increased to test processing plant capacity. Concentrate production continues to ramp up towards steady state commercial production,” Williams stated.
The Lumwana Mines have no smelter but Equinox has signed off-take agreements with Chambishi Copper Smelter and Mufulira smelter whose facilities would be used for refining its copper ores and concentrate production.
On the Lumwana uranium project, Williams stated that Equinox believed it to be prudent to defer the implementation of the uranium project until conditions improve sufficiently to deliver appropriate shareholder value.
And on the development of the Lumwana town, Williams stated that the housing development had continued to grow with over 450 houses completed to date, of which 120 houses had already been allocated to local staff under a home ownership mortgage programme.
Labels: DEVELOPMENT AGREEMENTS, EQUINOX, WINDFALL TAX
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