Equinox Minerals

Equinox Minerals was a Canadian mining and exploration company with corporate offices in Toronto, Ontario, and Perth, Western Australia. Its principal business was the development and operation of large-scale copper assets, supported by exploration interests in copper, gold, silver, zinc, uranium, and coal. The company became particularly associated with the Lumwana project in Zambia, one of the largest copper-development projects in Africa and the asset that ultimately attracted Barrick Gold Corporation's acquisition offer. The modern company was incorporated in Canada in January 2004 following the merger of Equinox and Equinox Resources. Its Zambian activities dated back to 1996, while Equinox acquired the Lumwana project in 1999. Lumwana covered approximately 1,355 square kilometres and included the Malundwe and Chimiwungo open-pit sulphide copper deposits. Earlier attempts by at least ten companies to develop the project had failed, making its eventual construction a significant achievement for Equinox. Development reportedly required about US$1 billion and was based on reserves expected to support a long operating life. Lumwana became the company's main producing asset. Equinox reported 2010 copper production of 323.4 million pounds, or approximately 146,690 tonnes, a substantial increase from 192.1 million pounds in 2009. Sales in 2010 were 290.2 million pounds, compared with 179.72 million pounds in 2009. The company also reported capital expenditure of US$66 million and substantial debt during 2010, although long-term debt declined late in that year. Beyond mine output, Equinox supported local social-development initiatives around its Zambian operations, including school construction and efforts intended to attract professional workers to mining communities. Equinox expanded its portfolio during 2010. It acquired the Jabal Sayid copper-gold-silver project in Saudi Arabia, located about 350 kilometres from Jeddah, and held exploration interests in Peru and Australia through Liontown Resources Limited and Alturas Minerals Corp. Projects and prospects referenced in connection with the company included Chapi Chapi-Utupara, Sombrero, Caccapaqui, and Huajoto in Peru, as well as coal and other exploration opportunities in Australia and the Zambezi area. The company also became involved in a highly contested period of consolidation in the copper industry. In February 2010, Equinox launched a hostile bid for Lundin Mining while Lundin was pursuing a proposed combination with Inmet Mining. Equinox later rejected a takeover proposal from China Minmetals. The contest ended when Barrick Gold announced an agreement to acquire Equinox for approximately US$7.69 billion on April 25, 2011. Following completion of the acquisition, Equinox ceased to operate as an independent public mining company, and Lumwana became part of Barrick's portfolio.

Equinox Minerals' corporate history combined an earlier exploration presence in Zambia with the later consolidation of Canadian mining entities. Operations in Zambia began in 1996. The company's defining asset was the Lumwana project, which covered roughly 1,355 square kilometres and incorporated two major open-pit copper deposits, Malundwe and Chimiwungo. Before Equinox acquired the project in 1999, at least ten companies had attempted unsuccessfully to develop it. Equinox's effort converted the long-delayed project into a producing mine and established the company as a significant African copper producer. Equinox and Equinox Resources merged in January 2004, and the resulting company was incorporated in Canada that month. The business maintained corporate offices in Toronto and Perth, reflecting its Canadian corporate structure and Australian mining and exploration connections. Lumwana required reported development expenditure of approximately US$1 billion. Its deposits were sulphide ores containing copper, with associated references to uranium and gold resources. The project was described as having sufficient reserves for a potential operating life of about 37 years. Production growth at Lumwana was rapid. In 2009, Equinox reported copper production of 192.1 million pounds and sales of 179.72 million pounds. In 2010, production increased to 323.4 million pounds, equivalent to approximately 146,690 tonnes, while sales rose to 290.2 million pounds. The company reported that most of its 2010 production occurred during the first nine months of the year. Capital expenditure was reported at US$66 million. Debt remained material, with reported debt of US$433 million in September 2010, but long-term debt declined in the final quarter from approximately US$422 million to about US$295.57 million. The company used Lumwana as a base for broader geographic expansion. It acquired the Jabal Sayid copper-gold-silver project in Saudi Arabia in 2010, with the project described as being capable of processing 2.6 million tonnes of ore annually when developed. Equinox also pursued exploration in Peru and Australia through interests associated with Liontown Resources Limited and Alturas Minerals Corp. Peruvian prospects included Chapi Chapi-Utupara, Sombrero, Caccapaqui, and Huajoto, covering combinations of copper, gold, silver, and zinc. Other exploration references included the Zambezi coal project and Australian interests. Equinox was involved in an intense sequence of takeover activity in 2010 and 2011. In February 2010, it made a hostile bid for Lundin Mining while Lundin was separately pursuing a proposed merger with Inmet Mining. Equinox rejected a subsequent offer from China Minmetals. Barrick Gold ultimately announced on April 25, 2011 that it would acquire Equinox for approximately US$7.69 billion. The acquisition removed Equinox as an independent company and transferred the Lumwana business to Barrick. Equinox therefore ended its corporate life as a standalone listed mining group, although its principal mine and related assets continued under new ownership.

• 2011

  Barrick Gold announces acquisition

  [1]Equinox Mineralsen.wikipedia.org

  Barrick Gold announced an approximately US$7.69 billion acquisition of Equinox Minerals on April 25.

• 2010

  Lumwana production expands

  [1]Equinox Mineralsen.wikipedia.org

  Reported copper production reached 323.4 million pounds, up from 192.1 million pounds in 2009.

• 2010

  Jabal Sayid is added to the portfolio

  [1]Equinox Mineralsen.wikipedia.org

  Equinox acquired the Jabal Sayid copper-gold-silver project in Saudi Arabia.

• 2004

  Merger creates Equinox Minerals

  [1]Equinox Mineralsen.wikipedia.org

  Equinox and Equinox Resources merged in January, and the resulting company was incorporated in Canada.

• 1999

  Equinox acquires the Lumwana project

  [1]Equinox Mineralsen.wikipedia.org

  Equinox acquired the long-delayed Lumwana copper project after numerous earlier attempts by other companies to develop it.

• 1996

  Zambian operations begin

  [1]Equinox Mineralsen.wikipedia.org

  Equinox's predecessor activities in Zambia began, establishing the country's long-term importance to the company's strategy.

A growth-oriented international base-metals company centered on the development of large copper assets and supported by a geographically diverse exploration portfolio.

• Copper mining

  Lumwana copper mine complex

  Lumwana was Equinox Minerals' principal operating asset in Zambia. The project comprised the Malundwe and Chimiwungo open-pit sulphide copper deposits across a large land package. It required approximately US$1 billion in development spending and became the source of the company's reported 2010 copper production of 323.4 million pounds. The project also had associated references to uranium and gold mineralization and was expected to support a long mine life based on reported reserves.

• Copper-gold-silver development project · 2010

  Jabal Sayid

  Jabal Sayid was a Saudi Arabian copper-gold-silver project acquired by Equinox in 2010. It was located approximately 350 kilometres from Jeddah and was described as having potential processing capacity of about 2.6 million tonnes of ore per year. The project represented Equinox's effort to diversify beyond its established Zambian operation.

• Mineral exploration

  Peruvian exploration portfolio

  Equinox held exploration interests in Peru through assets and corporate interests associated with Liontown Resources Limited and Alturas Minerals Corp. Named prospects included Chapi Chapi-Utupara, Sombrero, Caccapaqui, and Huajoto. The portfolio covered combinations of copper, gold, silver, and zinc rather than a single standardized commercial product.

• Mineral exploration

  Australian exploration interests

  The company maintained exploration interests in Australia, linked in the reference material to Liontown Resources Limited and other portfolio activities. These interests formed part of Equinox's strategy of maintaining growth options beyond its producing Zambian copper operation.

• 2011

  Acceptance of Barrick Gold acquisitionM&A

  Background

  After rejecting a China Minmetals proposal, Equinox received a larger acquisition proposal from Barrick Gold.

  Action taken

  Equinox accepted Barrick Gold's acquisition offer, announced on April 25, 2011.

  Aftermath

  Equinox ceased to operate as an independent company, and its Lumwana business became part of Barrick Gold.

  Announced acquisition value. Approximately US$7.69 billion (2011)

  Source

• 2010

  Launch of hostile Lundin Mining bidM&A

  Background

  Equinox sought to expand its copper production and reserves during a period of consolidation in the mining industry. Lundin Mining was itself pursuing a proposed transaction involving Inmet Mining.

  Action taken

  Equinox launched a reported US$4.8 billion hostile takeover bid for Lundin Mining.

  Aftermath

  The bid did not produce a completed combination. Equinox later became the target of competing takeover interest before accepting Barrick Gold's offer.

  Reported value of proposed takeover bid. US$4.8 billion proposed bid (2010)

  Source

1. 1Equinox Mineralsen.wikipedia.org