Copper project in Zambia hit by fire, remediation underway.
Equinox Minerals (TSX: T.EQN, Stock Forum) provided an update on its Lumwana copper project in Zambia today, two weeks after the company reported that a fire had caused damage to a 20MVA transformer and adjacent 11kV substation. The damage has had an impact on the process plant facility currently being commissioned by the Australia-based company's EPC contractor, the Ausenco Bateman Joint Venture.
Equinox has begun to repair the damage and replacement items have been ordered. The company is looking at a December, 2008 date for the replacement, installation and testing of the new equipment.
Craig Williams, president and CEO, said, "While this is an unfortunate event, our focus remains on delivering a world class asset and facilities to our shareholders and the people of Zambia. Lumwana is a project that will deliver strong returns and provide significant scope for expansion in the near future."
Today on the Bullboard, Stockhouse investor Schmoby responded to the news release: “It all makes sense now why the price inexplicitly dropped so sharply yesterday. This is a pretty major setback. See you in 3 months.”