Dundee Precious Metals completes sale of Tsumeb smelter in Namibia

Canadian gold mining company Dundee Precious Metals (DPM) has completed the sale of the Tsumeb smelter in Namibia to a subsidiary of China’s Sinomine Resource Group.

The deal, valued at $20 million ($26.99 million), debt-free and cash-free, includes a $5 million escrow hold over six months to secure DPM’s indemnification obligations under the purchase of shares.

The agreement between the parties was signed in March 2024. It includes all associated assets and liabilities through the sale of all shares that DPM indirectly holds in Dundee Precious Metals Tsumeb Holding.

The divestment of the smelter will allow DPM to focus on its core business areas and growth initiatives.

DPM Chairman and CEO David Rae said: “In line with our strategy, the divestiture of Tsumeb is another step in our continued track record of creating shareholder value. I would like to express our thanks to the Government of Namibia, Sinomine and our former employees and stakeholders for the safe transition and continued success.”

The company acquired the smelter in 2010 to provide processing throughput for the complex concentrate produced at the Chelopech mine in Bulgaria.

The Tsumeb smelter is equipped to process complex polymetallic concentrates, including those with higher arsenic content.

However, as a result of changes in the global smelting market and changes in the quality of Chelopech concentrate, Dundee has found it feasible to process its concentrate at various other third-party facilities.

These alternatives offer safe and reliable processing options under favorable conditions, the company said earlier.

In December 2023, DPM agreed to acquire Canada’s Osino Resources for $214 million.

“Dundee Precious Metals completes sale of Tsumeb smelter in Namibia” was created and originally published by Mining Technology, a brand owned by GlobalData.

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