Sinomine Tsumeb Smelter will temporarily suspend copper smelting operations and place the plant under care and maintenance due to challenging global market conditions, the company’s CEO, Loggan Lou, has announced.
The decision was shared during a series of stakeholder engagement sessions with employees, government officials and service providers, where Lou outlined the company’s future plans and the current pressures facing the copper industry.
“Increased smelting capacity in major copper-producing regions has led to global overcapacity. This has caused a shortage of copper concentrate, which in turn has placed pressure on smelters around the world, including Tsumeb,” said Lou.
He added that falling spot treatment and refining charges (TCRCs) were undermining the plant’s operational sustainability.
“In response to these market conditions, Sinomine Tsumeb Smelter will temporarily pause copper smelting operations and place the plant under care and maintenance until the market improves. During this period, we will redirect our focus to key strategic projects that position us for long-term success,” Lou said.
The company aims to reduce overall costs by 30 to 40%. As part of the restructuring process, a voluntary separation programme will be introduced for employees.
“Our priority is to engage openly with our employees and stakeholders throughout this process. We remain fully committed to transparent communication, adherence to Namibian laws, and compliance with the conditions set by the Namibian Competition Commission,” Lou added.
Reflecting on the company’s journey since acquiring the smelter in September 2024, Lou said Sinomine had identified valuable critical minerals on site.
He stressed the need for alignment with the company’s broader strategy of becoming “a world-class resource-based mining company dedicated to new energy and emerging industries.”
As part of its long-term vision, Sinomine plans to upgrade the smelter to enable the commercial production of multiple metals and minerals, including multi-metals recycling, alkali-metal salts production and sulphur burning operations.
Lou described these developments as vital to the long-term viability of the business.
He noted that work on the Multi-Metals Recycling Project was already under way, with the company having secured an Environmental Clearance Certificate.
Construction is expected to proceed in three phases, with the first phase to begin soon.
Production is targeted to start in the fourth quarter of 2025.
“This is not an easy time. That’s why we are approaching this change with care and responsibility, ensuring wellness support is available for our employees,” Lou said.
Sinomine (Hong Kong) Rare Metals Resources Co., Ltd., a wholly owned subsidiary of Sinomine Resources Group Co., Ltd., reached an agreement to acquire the Tsumeb Smelter from Dundee Precious Metals Inc. on 7 March 2024.
The deal was finalised on 30 August 2024.
Since then, the company has undertaken a series of technical and strategic studies aimed at transforming the Tsumeb facility into a world-class, multi-metal smelting complex.
