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Sinomine Tsumeb Smelter has begun a series of stakeholder engagement sessions to share its strategic direction and future plans amid shifting global market conditions. The sessions, held this week in Tsumeb, brought together employees, government representatives, and service providers to hear directly from CEO Loggan Lou.
Speaking to the audience, Lou described the increasing strains on the world copper market, pointing out that the capacity for smelting copper has increased significantly worldwide, surpassing the supply of copper concentrate. Smelters worldwide, including the Tsumeb facility, are facing financial difficulty as a result of this mismatch, which has led to a decline in spot treatment and refining costs.
The firm responded to these difficulties by announcing a brief suspension of its copper smelting activities, putting the facility under care and maintenance until the market conditions improve. Lou stressed that this would not be a time of inactivity but rather an important stage aimed at reorienting the smelter for long-term growth and sustainability.
A targeted cost reduction of 30 to 40 percent is a component of this strategy change. A voluntary separation procedure for staff members will be implemented to ease the transition. Mr. Lou gave his word that the business is still dedicated to open communication, adherence to the law, and conformity with regulatory frameworks, such as those established by the Namibian Competition Commission.
Lou discussed the advancements made after Sinomine Resource Group purchased the smelter in September 2024, pointing out that the on-site identification of important minerals has enhanced the smelter’s potential going forward. The company’s goal is to turn the smelter into a top-notch facility that can meet the expanding needs of the rising industries and new energy sectors.
The development of cutting-edge technology to facilitate the production of a wider variety of metals and minerals is essential to this change. The development of multi-metals recycling, alkali-metal salt production, and sulfur burning operations are examples of strategic initiatives that are presently under progress. According to Lou, these areas are essential to the long-term survival of the business.
The Multi-Metals Recycling Project has already advanced significantly, as evidenced by the company’s recent Environmental Clearance Certificate. Three stages of construction will be undertaken; the first is anticipated to start shortly, and production is scheduled to commence in the fourth quarter of 2025.
Lou concluded his address by encouraging employees to remain supportive and resilient during the transition. He reaffirmed the company’s commitment to health and safety and announced that wellness support services would be available to staff throughout the process.
The Tsumeb Smelter was officially acquired by Sinomine (Hong Kong) Rare Metals Resources Co., Ltd., a subsidiary of Sinomine Resources Group, in August 2024. Since then, the company has focused on enhancing its facilities to meet the demands of lithium battery production and energy transition technologies. These efforts are also expected to create additional employment opportunities, contributing to local economic development.
