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VANCOUVER - Another battle for some of Canada's top mining companies is shaping up with Australia's Equinox Minerals Ltd. EQN-T slated to make a hostile bid for Lundin Mining Corp. LUN-T that could thwart Lundin's proposed merger with Inmet Mining Corp. IMN-T

Vancouver-based Lundin said late Sunday that Equinox, a copper miner listed in Toronto and Australia, intends to make an unsolicited takeover offer before markets open on Monday. Equinox requested its shares be halted on the Australian Stock Exchange before that market opened on Monday, "pending the release of an announcement by the company."

A rival bid is expected to put both Lundin and Inmet in play and has the potential of sparking another epic takeover battle not seen since the breakup of the friendly Inco and Falconbridge deal five years ago, which ultimately reshaped Canada's mining industry. A takeover offer from Equinox may also renew the debate about foreign takeovers of Canadian-based companies.

Lundin, which announced its "merger of equals" with Toronto-based Inmet in January, said it wasn't aware of the terms of the proposed Equinox bid as of late Sunday. It advised shareholders to take no action until it reviewed the offer.

An Equinox bid for Lundin comes just two weeks before Lundin and Inmet shareholders are set to vote on their proposed deal, a merger that is being touted as a new Canadian-based copper powerhouse with a combined market capitalization of more than $9-billion, to be called Symterra Corp.

The potential takeover battle is the latest in a series of mining mergers and acquisitions. Companies flush with cash from surging commodity prices are pushing to expand their operations as part of a global scramble to secure attractive mineral reserves.

Copper producers are particularly hungry to grow their operations as demand for the widely used metal is on a record run, thanks to tight supply and strong demand. The metal, used in everything from power to construction, is sought by rapidly industrializing countries such as China and India as they build out their infrastructure.

The price of copper has surged almost 40 per cent since the beginning of 2010. On Friday, copper posted its biggest daily gain in three months, reaching around $4.45 (U.S.) per pound, not far from its record of $4.65, amid easing inflation worries.

Equinox's proposed offer for Lundin comes weeks after it closed a $1.26-billion deal to buy Australian base metals developer Citadel Resource Group Ltd., giving it access to development and exploration assets in Saudi Arabia, including the Jabal Sayid copper-gold project scheduled to begin production late next year. Equinox owns the Lumwana copper mine in Zambia, which it acquired in 1999.

Vancouver-based Lundin has operations in Portugal, Spain and Sweden that produce copper, nickel, lead and zinc. It also has expansion projects at its Zinkgruvan operation in Sweden and its Neves Corvo mine in Portugal, along with an equity stake in the promising Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo, which is considered its most prized asset.

As part of the Lundin-Inmet merger deal struck in mid-January, each party agreed not to solicit any alternative transactions and includes a right to match clause should other offers come up. The Lundin-Inmet deal also includes a $120-million break fee.

Inmet chief executive officer Jochen Tilk refused to comment on the interloping offer when contacted on Sunday. Officials at Lundin and Equinox also refused to comment.

In an interview with The Globe and Mail last month, Lukas Lundin said he wasn't expecting a rival bid to come forward. However, he said the merged company might be attractive to a big name producer.

Equinox's proposed bid for Lundin has the beginnings of what could be another round of mining mergers in Canada not seen since 2005.

That's when Inco announced a friendly deal to acquire Falconbridge to create a home-grown mining giant. Xstrata interfered with a hostile offer for Falconbridge, while Inco was being pursued by Teck Resources Ltd. Inco then recruited Phelps Dodge to help finance a higher bid for Falconbridge. The battle lasted a full year and in the end Vale won Inco with an all cash $19-billion offer, while Xstrata seized control of Falconbridge for $24-billion.