Competition commission approves Dundee Tsumeb smelter sale
Smelter to be acquired
The Sinomine Resource Group's acquisition of Dundee's smelter is on track to close as planned in the third quarter of 2024.
The Canadian-listed company Dundee Precious Metals has announced that the sale of its interest in the Tsumeb smelter to a subsidiary of Sinomine Resource Group has been approved by the Namibian Competition Commission (NaCC).“The sale is on track to close as planned in the third quarter of 2024, subject to the completion of documentation related to the revised purchase price and proposed tolling arrangement,” Dundee Precious Metals said.
Dundee acquired the smelter in 2010 to secure a processing plant for the complex concentrate from the company’s Chelopech mine in Bulgaria. With developments in the global smelting market and changes in the quality of the Chelopech concentrate, the company says it can now place the concentrate at several other third-party facilities.
“We are pleased to announce the sale of the Tsumeb smelter, which is consistent with our strategic objective of focusing on our gold mining assets and simplifying our portfolio going forward. We are extremely proud of the investments that we have made to transform Tsumeb’s operational and environmental performance into a specialised custom smelter with a highly skilled workforce,” CEO David Rae said previously.
“We would like to thank the government of Namibia, the community of Tsumeb and our employees for their support over the past 13 years. We will work closely with Sinomine to ensure a smooth transition to support a successful future for the operation and all of its stakeholders,” he added.
Advances
Dundee has made significant upgrades at Tsumeb over the past few years. Sulphur dioxide emissions were reduced by 95% from 2014 to 2021. There has also been a 72% decrease in average arsenic exposure since 2012 with the oversite of the arsenic advisory council.
The smelter produces 95% blister copper, which is then refined in Europe and Asia, as well as sulphuric acid, which is sold to third-party clients for use in uranium and copper mining.