Equinox Lumwana Copper Project awarded to JV team
BATEMAN, in a joint venture with Ausenco International Pty Ltd,
has been awarded the implementation phase of the Lumwana Copper Project
in Zambia by Equinox Minerals Limited. The engineering, construction
and procurement (EPC) contract is estimated to be worth in excess
of US$200 million and is expected to run over 16 months.
Equinox is an international mineral-exploration and development company
with a focus on base and precious metals and is listed on both the
Toronto and Australian stock exchanges. The jointventure participants
comprise the same team that was awarded the 2005 Australian Engineering
Excellence Award by the Australian Government for the successful completion
of the design, construction and commissioning of the Sepon Copper
Project in Laos for Oxiana Limited.
The Bateman-Ausenco joint venture will immediately commence the detailed
engineering and, under the agreement, will submit an EPC contract
to Equinox by the end of the first quarter of 2006. This will enable
Equinox to finalise the debt funding portion of the project-development
capital. On completion of the detailed design and key sub-contract
negotiations, a final EPC contract will be agreed upon by mid-2006.
The Lumwana copper project includes two major copper deposits, Malundwe
and Chimiwungo, situated 7 km apart and is located in north western
Zambia, 220 km west of the Copperbelt and 65 km west of the town of
Solwezi. It is one of the world’s largest undeveloped copper
deposits with measured and indicated resources presently totaling
269M t averaging 0.8 % copper (with additional inferred resources
totaling 632M t averaging 0.6 % copper). Equinox will mine an average
of 20M t/yr with the processing plant producing copper concentrate
equivalent to an average of 150,000 t of copper annually over the
17 year mine life. Due to higher grades, copper concentrate production
in the first five years of operations will be substantially higher
(equivalent to over 188,000 t/yr copper).
The plant will make use of conventional flotation processing as metallurgical
test work has indicated a greater than 95 % recovery of copper using
these methods. Concentrates will be smelted and refined into metal
at smelters either in Zambia, southern Africa and / or offshore.
One of the key reasons that Lumwana was not previously mined was
the limited regional infrastructure, but this has now changed with
the completion of the T5 northwest highway linking the Lumwana region
to Solwezi and the Copperbelt, and passing within 3 km of the project.
The 330kV powerline has been constructed from the Copperbelt to Solwezi
and will be extended to Lumwana.
The Lumwana copper project has attracted strong support from the
Zambian government and the local community as it is expected to have
a major positive impact on both the local community and the country
by providing employment and the benefits of major foreign investment
and foreign exchange.
For further information please contact Pieter du Plessis, Managing
Director, Bateman Minerals & Metals, on +27-11-899-9111 or email
basemetals@BatemanEngineering.com.
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