Canada-based gold mining company Dundee Precious Metals (DPM) has completed the sale of the Tsumeb smelter in Namibia to a subsidiary of Sinomine Resources Group for $20 million. The sale includes a $5 million holdback to be held in escrow for six months to cover DPM’s indemnity obligations as per the share purchase agreement with Sinomine. After adjustments, DPM received a net cash payment of $15.9 million.
The Tsumeb smelter is one of the few facilities worldwide capable of processing complex polymetallic concentrates, including those with higher arsenic content. It produces blister copper (98.5% copper), which is further refined in Europe and Asia, and generates sulphuric acid as a by-product. DPM acquired the smelter in 2010 to process concentrate from its Chelopech mine in Bulgaria. However, in March, the company announced the sale due to shifts in the global smelting market and changes in the quality of Chelopech concentrate, allowing it to use other third-party processing facilities.