6 Jun 2025
Namibia's Sinomine Tsumeb plant enters care and maintenance phase as copper concentrate shortages and low TCRCs impact global smelters.
Sinomine Tsumeb Smelter will temporarily suspend its copper smelting operations and place the facility under care and maintenance, citing difficult global market conditions, the company’s chief executive said.
Loggan Lou, CEO of Sinomine Tsumeb, made the announcement during a series of stakeholder engagement sessions with employees, government officials and service providers. He outlined the company’s long-term plans while highlighting current challenges in the copper sector.
“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,” Lou said.
He said falling spot treatment and refining charges, known as TCRCs, have further eroded the operational sustainability of the smelter.
“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 plans to reduce overall costs by 30% to 40% as part of a broader restructuring effort. A voluntary separation program 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.
Sinomine acquired the Tsumeb Smelter in September 2024 and has since identified valuable critical minerals on site, Lou said. He emphasized the company’s strategy to evolve into “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 facility to support commercial production of multiple metals and minerals. The planned upgrades include multi-metals recycling, alkali-metal salts production and sulphur burning operations — initiatives Lou described as essential to the business’s long-term viability.
Work has already begun on the Multi-Metals Recycling Project. The company has secured an Environmental Clearance Certificate, and construction is set to proceed in three phases. The first phase is expected to begin soon, with production targeted for 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 smelter from Dundee Precious Metals Inc. on March 7, 2024. The transaction was finalized on Aug. 30, 2024.
Since the acquisition, the company has conducted a series of technical and strategic studies aimed at transforming Tsumeb into a world-class, multi-metal smelting complex.