Dundee Precious Metals says it will undertake a strategic review of the Tsumeb smelter, including a potential sale, as it is no longer strategic to its portfolio.
The Tsumeb smelter is one of a few smelters globally that can treat complex polymetallic concentrates, including those with higher arsenic content.
It produces blister copper (98.5% CU), refined in Europe and Asia, and sulphuric acid as a by-product, sold to third-party clients for use in uranium and copper mining.
The Canadian company, which acquired the Twin Hills Gold Project from Osino Resources in December 2023, said this in its 2023 Financial Results and Updated Three-Year Outlook.
Dundee Precious Metals Inc. also declared a first-quarter dividend of US$0.04 per common share.
The company said it decided to undertake a strategic review of its Tsumeb operation, including a potential sale, given that the smelter is no longer expected to process any Chelopech (Bulgaria) concentrate commencing in 2024.
Dundee said that as a result, the assets and liabilities of Tsumeb have been presented as held for sale in the consolidated statement of financial position as at December 31, 2023, and the operating results and cash flows of Tsumeb have been presented as discontinued operations in the consolidated statements of earnings (loss) and cash flows for the years ended December 31, 2023, and 2022.
In the fourth quarter of 2023, the smelter smelted 67,891 tonnes of complex copper, 26,056 tonnes higher than the corresponding period in 2022.
This reflected improved operating performance due to the maintenance work that occurred in the third quarter of 2023, compared to a 17-day shutdown to repair a water leak in the off-gas system and instability in the power grid due to abnormally heavy rainfall in December 2022.
In 2023, the smelter smelted 188,803 tonnes of complex copper concentrate, 14,681 tonnes higher than the corresponding period in 2022, due primarily to increased plant availability following the completion of the maintenance work in the third quarter of 2023.
Tsumeb Smelter Background
Newmont Mining Corporation and the American Metal Company bought the legendary Tsumeb Copper Mine from South Africa’s Custodian of Enemy Property for US$4 million.
The Tsumeb Corporation Limited, a US company Newmont Mining Corporation subsidiary founded in 1947, built the smelter in 1962.
The Tsumeb Smelter Complex was commissioned in 1963 to smelt copper from Tsumeb Corporation’s copper mines, including Kombat, which had been reopened in 1962.
Newmont sold its assets to Goldfields Namibia in 1988. Two years later, copper prices declined.
Goldfields had to stop operations and went into liquidation in 1998.
Ongopolo Mining & Processing Limited acquired Tsumeb Corporation’s assets—Tsumeb, Kombat, Otjihase, Khusib Springs, and the smelter—in March 2000.
Weatherly International bought off Ongopolo’s assets in 2006 and sold the smelter to Dundee Precious Metals in 2010 for US$33 million.
