Equinox Reaches Settlement with ZESCOadmin
Equinox Minerals Limited and ZESCO Limited, the Zambian power authority, are pleased to announce that on March 17, 2010, a settlement agreement (the “Settlement Agreement”) was executed in relation to electrical power supply charges incurred during the construction phase of the Lumwana Copper Mine in Zambia.
The terms of the US$4 million Settlement Agreement affords Equinox full and final satisfaction and release from all claims and causes relating to the dispute that involved ZESCO electrical power off-take supplied to the Lumwana Copper Mine up to and including December, 2009.
The Settlement Agreement re-affirms the integrity and continuity of Equinox’s long term Lumwana Power Supply Agreement as announced by Equinox on February 16, 2006.
In a joint statement made subsequent to signing the Settlement Agreement, Mr Craig Williams (Equinox President and Chief Executive Officer) and Mr Ernest Mupwaya (ZESCO Acting Managing Director) commented, “We are very pleased that the dispute has been resolved in an amicable manner and we reiterate that this Settlement Agreement underscores our strong commitment to develop and grow a long term relationship and partnership.”
Lumwana is the first ‘greenfields’ copper investment in Zambia in a generation and has brought significant infrastructure development and employment to what was an economically depressed area of Zambia. Electrical supply to Lumwana represents a key extension of the interconnected power grid in Zambia, and apart from providing bulk power supply to the Lumwana mining operations, interconnected power has also been made available for the first time to the Lumwana region through domestic reticulation to residential housing in a town development constructed by the Company as part of its development agreements and construction commitments to the nation.
The line also makes it possible for ZESCO to connect the rest of the North western Province to the national grid.