Equinox, Palabora reach deal on copper

Equinox Minerals (EQN-T) intends to sell copper concentrate from the Lumwana project in Zambia to South African copper producer Palabora Mining.

The companies expect to have a definitive sales agreement by year-end. Palabora, which operates a mine and smelter in the eastern part of the Northern province, is seeking smelter feed as it converted from an 81,000-tonne-per-day open-pit mine to a 30,000-tonne-per-day bulk underground mine in 2003.

Sales to Palabora would not take up all the planned production from Lumwana, and Equinox is in discussions with other smelters in southern Africa. Rio Tinto (RTP-N) is Palabora’s largest shareholder, with 49%.