China's Sinomine halts Namibia copper smelter, citing concentrate shortage due to global 'overcapacity'

WINDHOEK, June 6 (Reuters) - China's Sinomine Resource Group 002738.SZ said on Friday it has temporarily paused copper smelting operations at its Tsumeb plant in Namibia, citing a shortage of concentrate following a rapid expansion in smelter capacity worldwide.

Sinomine acquired the Tsumeb smelter, one of the few facilities in the world that can treat arsenic and lead-bearing copper concentrates, from Dundee Precious Metals DPM.TO in 2024.

The smelter, with capacity to process 240,000 metric tons of copper concentrate annually, has previously processed metal from countries such as Chile, Peru and Bulgaria.

Global copper smelting capacity has expanded rapidly in recent years, outstripping production of the metal whose demand has been boosted by its use in renewable energy technologies, including electric vehicles.

Sinomine Tsumeb Smelter CEO Loggan Lou said in a statement that increased smelting capacity in major copper-producing regions has "resulted in substantial overcapacity".

"This has led to a shortage of copper concentrate, placing

pressure on smelters worldwide, including Tsumeb," Lou said.

Sinomine plans to upgrade the smelter to enable the commercial production of multiple critical metals and minerals.

Last September, Sinomine announced that the Tsumeb Smelter contains 746 metric tons of germanium, a critical mineral essential for chipmaking, infrared technology, fibre optic cables, and solar cells.

The smelter is also exploring the addition of germanium and zinc smelting lines to the smelter.