Spectra of the optical transmission and ion-induced photon emission (IIPE) of LiNbO3 were measured during implantation of 60 keV Cu- ions at ion fluxes from 1 to 50 muA/cm(2) up to a fluence of 2 x 10(17) ionS/cm(2). The optical transmission in the range of surface plasmon resonance (SPR) and the IIPE are good monitors of the nanocomposite formation and the chemical composition change, respectively. Copper atoms precipitate at fluences lower than 6 x 10(15) ions/cm(2). Further formation of nanocomposite comprises two easily distinguishable stages: the slope of fluence dependencies of SPR abruptly decreases at about 10 17 ions/cm(2). Lithium-depleted regions are created in the substrates, and concentration of Nb increases. The formation of nanocomposite is 2 most efficient at a flux of I muA/cm(2) (C) 2004 Elsevier B.V. All rights reserved.