SANTIAGO - Equinox Minerals Ltd plans to expand its Lumwana...

SANTIAGO - Equinox Minerals Ltd plans to expand its Lumwana copper mine in Zambia and is in talks with possible partners that will allow it to build a $200-million uranium plant on the site, the company's CEO Craig Williams told Reuters on Thursday.

Australian miner, Equinox, is currently ramping up output at Lumwana, one of the largest open pit copper mines in Africa.

"We have doubled our exploration budget this year to $10-million on the mining license... really what we've got on our license is the makings of a copper province, there is lots of opportunity there," Williams said in an interview on the sidelines of the CRU/CESCO copper conference in Santiago.

He said the company is looking to produce "up to 150 000 t to 170 000 t of copper, and over time we have a Phase II expansion plan ... that will push up production to over 200,000 tonnes of copper in the next three to five years."

Equinox on Wednesday reported a 37% jump in output at Lumwana to 30 471 t of copper concentrate in the first quarter, and said the improved output indicated it could meet its full-year 2010 guidance of 135,000 tonnes of copper versus 109 413 t in 2009.

"At the moment we are a one-mine company ... the financial strength of the company is expanding very rapidly and I think it's appropriate now to be looking around for some geographical diversification. I'd like within a few years to have a second operation somewhere," Williams said.

He also said Equinox is in talks with off takers, or potential long-term buyers, to build a $200-million uranium plant in Zambia.

"We are now commencing our discussion with off takers to see if we can put in place the right price package for the off taking ... If we can't get the right price we are happy to leave it sit for a while," he said.

The mining executive said that is unlikely Zambia will re-introduce a windfall tax on miners and that the company's has a good relationship with the government of the land-locked African country.

"They have stated very clearly ... that they will not be reintroducing windfall tax. They recognize that when they did bring that in, in 2008, there was a collapse in foreign investment in the country because of that, so I think that's very clearly off the agenda."