Equinox Minerals
Encyclopedia
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. The region contains one of the world's largest copper-cobalt deposits.
Through Liontown Resources Limited and Alturas Minerals Corp., the company has gold and copper-gold exploration interests in Peru and Australia.
The Lumwana project which has enough reserves to be productive for 37 years, cost the company one billion dollars to develop.
In Zambia it has been credited with supporting social development through projects which aim to build schools, attract professionals to areas around its mine sites. 2010 copper production was 323.4 million pounds (146,690 tonnes) 68% higher than in 2009 (192.1 million pounds). Equinox production represents half of parent company Barrick Gold's copper production.
The company produces slightly more coal than it sells (In 2010 323.4 vs 290.2 million pounds up from 2009 when it was 290.42 vs 179.72 million pounds), 77% of production occurred duing the first nine months of the year (production was 113 kt, sales were 98kt); capital expenditure amounted to $66 million. In September 2010 company debt was $433 million, long term debt fell significantly in the last quarter of 2010 from $422 million down to $295.57 million. Even though Equinox doesn't produce gold Barrick Gold, the world's largest gold company (both in terms of reserves and production) acquired Equinox Minerals in April 2011; the deal will lower the fraction of revenue Barrick receives from the sale of gold to 80%.
Prior to being acquired by Equinox in 1999 at least 10 different companies failed in their attempts to develop the Lumwana project, which covers 2 major copper mines and 1355 km squared in area.
In 2010 Equinox was involved in a couple major transactions; first it acquired the Jabal Sayid copper-gold-silver project 350 km from Jeddah, Saudi Arabia, capable of producing 2.6 million tons of ore per year starting in 2012.. In February it launched a $4.8 billion hostile takeover bid for copper producer Lundin Mining, at the same time Lundin was attempting its own takeover ($9 billion Inmet Mining merger which would result in the creation of Symterra Corp). (As of April 2011 none of those deals have been finalized, combination with Lundin Mining would raise Equinox production growth rate 23%). In April 2011, Equinox rejected a takeover offer by China Minmetals
, but later accepted a bid by Barrick Gold
.
On April 25th, 2011, Barrick Gold Corporation announced the acquisition of Equinox for $7.69 billion.
Perth, Western Australia
Perth is the capital and largest city of the Australian state of Western Australia and the fourth most populous city in Australia. The Perth metropolitan area has an estimated population of almost 1,700,000....
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. The region contains one of the world's largest copper-cobalt deposits.
Through Liontown Resources Limited and Alturas Minerals Corp., the company has gold and copper-gold exploration interests in Peru and Australia.
The Lumwana project which has enough reserves to be productive for 37 years, cost the company one billion dollars to develop.
In Zambia it has been credited with supporting social development through projects which aim to build schools, attract professionals to areas around its mine sites. 2010 copper production was 323.4 million pounds (146,690 tonnes) 68% higher than in 2009 (192.1 million pounds). Equinox production represents half of parent company Barrick Gold's copper production.
The company produces slightly more coal than it sells (In 2010 323.4 vs 290.2 million pounds up from 2009 when it was 290.42 vs 179.72 million pounds), 77% of production occurred duing the first nine months of the year (production was 113 kt, sales were 98kt); capital expenditure amounted to $66 million. In September 2010 company debt was $433 million, long term debt fell significantly in the last quarter of 2010 from $422 million down to $295.57 million. Even though Equinox doesn't produce gold Barrick Gold, the world's largest gold company (both in terms of reserves and production) acquired Equinox Minerals in April 2011; the deal will lower the fraction of revenue Barrick receives from the sale of gold to 80%.
History
The company formed after a merger between Equinox and Equinox Resources in January, 2004, and was incorporated the same month as a Canadian company. It began operations in Zambia in 1996.Prior to being acquired by Equinox in 1999 at least 10 different companies failed in their attempts to develop the Lumwana project, which covers 2 major copper mines and 1355 km squared in area.
In 2010 Equinox was involved in a couple major transactions; first it acquired the Jabal Sayid copper-gold-silver project 350 km from Jeddah, Saudi Arabia, capable of producing 2.6 million tons of ore per year starting in 2012.. In February it launched a $4.8 billion hostile takeover bid for copper producer Lundin Mining, at the same time Lundin was attempting its own takeover ($9 billion Inmet Mining merger which would result in the creation of Symterra Corp). (As of April 2011 none of those deals have been finalized, combination with Lundin Mining would raise Equinox production growth rate 23%). In April 2011, Equinox rejected a takeover offer by China Minmetals
China Minmetals
China Minmetals Corporation is a Chinese metals and mineral trading company. It is a state-controlled corporation existing under the laws of the People's Republic of China, is a diversified metals and mining company based in Beijing, China...
, but later accepted a bid by Barrick Gold
Barrick Gold
Barrick Gold Corporation is the largest pure gold mining company in the world, with its headquarters in Toronto, Ontario, Canada; and four regional business units located in Australia, Africa, North America and South America...
.
On April 25th, 2011, Barrick Gold Corporation announced the acquisition of Equinox for $7.69 billion.
Exploration projects
- ZambeziZambeziThe Zambezi is the fourth-longest river in Africa, and the largest flowing into the Indian Ocean from Africa. The area of its basin is , slightly less than half that of the Nile...
- coal - Chapi Chapi-Utupara, Sombrero, Caccapaqui and the Huajoto - copper, gold, silver, zinc
- Lumwana (2 open pit mines, both are sulphide ore deposits. - 5.97 billion pounds of copper, 7 billion pounds of copper inferred., 16 million pounds of uranium, gold
- Malundwe, Chipiwungo - First quarter 2010 production of copper on pace to meet the 135,000 tonne expectation for the year. Fairfax estimates that production will be 172,000 tons for the first five years.
See also
- Copper extraction techniques, Sulfide miningSulfide miningSulfide mining a colloquial term used in Wisconsin, Michigan, and Minnesota to describe the act of mining of ore which contains significant quantities of sulfide minerals....
- Economy of ZambiaEconomy of ZambiaZambia is one of Sub-Saharan Africa's most highly urbanized countries. About one-half of the country's 11.5 million people are concentrated in a few urban zones strung along the major transportation corridors, while rural areas are under-populated. Unemployment and underemployment are serious...
, SolweziSolweziSolwezi is the capital of the North Western Province of Zambia. Solwezi has approximately 65,000 inhabitants at an elevation of 1235 m above sea level... - Zambia Consolidated Copper MinesZambia Consolidated Copper MinesZCCM Investments Holdings is a principal operator of copper mines in Zambia. The government of Zambia owns over 85% of the company's stock...