Dundee Precious Metals Sells Namibia Smelter to Sinomine for $49M

Strategic Shift Focuses Dundee on Gold, Enhances Global Smelting

by Ikeoluwa Juliana Ogungbangbe
Dundee Namibia Smelter Sale

Dundee Precious Metals (DPM), a Canadian mining company, has announced a strategic move to sell its Tsumeb smelter located in Namibia to Sinomine Resources, a Chinese group, for a cash transaction of $49 million. This smelter stands out on the global stage as one of the select few capable of processing complex polymetallic concentrates, especially those with higher arsenic levels. Its production includes blister copper, with a purity of 98.5%, primarily refined in Europe and Asia, along with the generation of sulphuric acid as a valuable by-product.

Acquired by DPM in 2010, the Tsumeb smelter was initially intended to serve as a dedicated processing facility for the concentrate produced at DPM’s Chelopech mine in Bulgaria. However, shifts in the global smelting landscape, coupled with changes in the quality of the concentrate from Chelopech, have opened new doors for DPM to engage with various third-party processing facilities.

David Rae, CEO of Dundee Precious Metals, emphasized that this sale aligns perfectly with the company’s strategic vision to focus more intently on its gold mining ventures and to streamline its asset portfolio. Rae expressed pride in the significant investments made to enhance both the operational and environmental standards of the Tsumeb facility, noting its transformation into a specialized custom smelter equipped with a highly skilled workforce.

The completion of this transaction is contingent upon fulfilling several customary closing conditions, including receiving the green light under the Namibia Competition Act and securing the necessary approvals from Chinese regulatory bodies for overseas investments. The deal is anticipated to be finalized in the third quarter, marking a significant shift in the ownership and future direction of the Tsumeb smelter.

This sale not only reflects Dundee Precious Metals’ strategic shift towards gold mining but also underscores the evolving dynamics of the global smelting market. As the Tsumeb smelter transitions to new ownership, it represents a pivotal moment for both Dundee Precious Metals and Sinomine Resources, with potential impacts on the smelting industry and the broader mining sector.

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