Equinox Minerals Limited

Equinox Minerals Limited

July 18, 2007 09:31 ET

Equinox Signs 5-Year Agreements With Mopani and Glencore for Balance of Lumwana Concentrate

TORONTO, ONTARIO--(Marketwire - July 18, 2007) -


Equinox Minerals Limited (TSX:EQN)(ASX:EQN) ("Equinox" or the "Company") is pleased to report that its wholly owned subsidiary Lumwana Mining Company Limited ("LMC") has signed Concentrate Sale and Purchase Agreements (the "Agreements") with Mopani Copper Mines Plc ("Mopani") and Glencore International AG ("Glencore") for a total minimum contractual "take and pay" tonnage of 600,000 dry metric tonnes ("dmt") of Lumwana copper concentrates. The Agreements also grant Glencore a first option right to process further additional annual quantities of Lumwana copper concentrates determined as the difference between the current LMC scheduled production, less the base Agreement commitments above, and less LMC's commitments to Chambishi Copper Smelter (refer to Equinox announcement dated February 15, 2007). Any optional quantity will be distributed and treated between Mopani and Glencore in the proportions specified below.

This represents the balance of concentrates for the initial 5 years based on the scheduled production of the Lumwana Copper Project concentrator currently under construction.

The 5-year Agreements will commence from the start of LMC's production scheduled to commence in mid 2008 and combined, carry total base commitments of 120,000 dmt of copper concentrates (containing approximately 53,000 tonnes of copper metal) annually. The contracted commitments will be distributed 66.7% delivery to Mopani (for toll treatment at the Mufulira smelter) and 33.3% delivery to Glencore for trading. The Agreements will charge LMC copper treatment and refining charges ("TCRC's") to be determined annually based on global benchmark terms (refer to the October 2006 Technical Report for details of Lumwana concentrate).

Glencore is a privately held company owned by its management and employees. Headquartered in Baar, Switzerland, Glencore is one of the world's largest suppliers of a wide range of commodities and raw materials to industrial consumers and counterpart commercial producers.

Mopani is a joint venture company controlled by Glencore (73.1%). The other shareholders are First Quantum Minerals Ltd. (16.9%) and Zambian Consolidated Copper Mines Limited (10%). Mopani is an integrated copper and cobalt producer located in the Copperbelt of Zambia operating the Mufulira mine, smelter and copper refinery and the Nkana mine and cobalt plant. Current capacity of the Mufulira Copper Smelter is 800,000 tons per year of concentrate.

Lumwana, owned 100% by Equinox, is located in the North Western Province of the Republic of Zambia. The Lumwana mine will produce an average of 169,000 tonnes of copper metal per year contained in concentrates for the first 6 years of its 37 year mine life. Construction remains on schedule for commissioning in Q2 2008.

Commenting, Craig Williams, Equinox President and CEO said: "These Agreements complete the placement of 100% of the current LMC scheduled production into firm off take agreements, meet yet another key milestone to project financing and secure Equinox's presence in a growing and stable part of southern and central Africa."

On Behalf of the Board of Directors of Equinox:

Craig R. Williams - President & Chief Executive Officer

For information on Equinox and technical details on the Lumwana Project please refer to the company website at www.equinoxminerals.com.

Cautionary Language and Forward Looking Statements

This press release contains "forward-looking statements", which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure documents filed from time to time with the Canadian and Australian securities authorities.

ARBN 108 066 986

Contact Information