Equinox looks to develop Lumwana

A change in the development plan at the Lumwana copper project in Zambia promises to reduce capital costs for operator Equinox Minerals (EQN-T).

An October 2003 feasibility study had envisioned a two-phase development program, where a mine and mill would operate for the first five years wile a plant to produce refined copper was built. The plant would come into operation in the sixth year.

The new development plan sees Equinox shipping concentrate to a smelter for the life of the mine, cutting out a US$288 million capital cost. The plant would only be built if economically attractive at a later date. The mine and mill have a capital cost of US$296 million and the mining fleet will cost a further US$37 million.

Tenders for the construction of the mine and mill are being taken, and Equinox expects to award the main contract before the end of the year. Construction is scheduled to start in mid-2005, with production beginning near the end of 2006.