Long-term power construction and supply agreements for Lumwana

Equinox Minerals has signed the electricity connection and power supply agreements with the Zambian power authority, ZESCO. This concludes one of the last remaining key agreements required for Lumwana Project development prior to closing the debt component of the project financing. Lumwana is featured in the Process Engineering feature of IM’s March issue, out shortly.

The agreements entail the design and construction of a high voltage (330 kV) transmission line from Solwezi to Lumwana to supply power to the project. The 65 km extension of this line from Solwezi to Lumwana will not only provide sufficient power for Lumwana’s requirements, but includes sufficient capacity for future expansions at Lumwana and for regional power reticulation. The construction and commissioning of this line is scheduled to be completed by third quarter 2007 which is consistent with the current development schedule for Lumwana. Equinox has also entered into a 15 year, long-term power supply agreement with ZESCO to provide the bulk electricity requirements for the Lumwana Project.

Commenting on the agreements, Harry Michael, COO of Equinox and Managing Director of Equinox Copper Ventures (the 100% owned Zambian registered company) said, “The signing of these agreements maintains the momentum of the project which remains on track for the closing of debt financing and commencement of construction in mid-2006. As the Lumwana development continues in earnest, I look forward to working with all parties concerned to deliver the largest copper mine in Africa.”