CHAMWE KAIRA
Sinomine (Hong Kong) Rare Metals Resources Co Limited, which has bought Tsumeb Smelter from Dundee Precious Metals Inc will be expected to buy goods and services below N$250 000 from local companies, under conditions imposed by the Namibian Competition Commission.
The commission further said its decision is based on the grounds that the transaction is unlikely to prevent or lessen competition in Namibia.
Sinomine and Dundee have promised that there will be specific retrenchments by the merged undertaking for a period of three years after the date of implementation.
The company is also expected to comply with the mining license issued by the Ministry of Mines and Energy.
Th commission approved the proposed merger between Sinomine and Dundee last week with a number of conditions.
“There shall be no retrenchment of Namibian employees of the target undertaking as a result of the merger for three years post-closing of the transaction. The parties shall maintain a ratio of no less than 92% local employees to foreign employees,” the commission said in its merger conditions.
In terms environmental protection, Sinomine is also expected to maintain the existing office dealing with environmental issues with current scope to be maintained or improved conditions aimed at avoiding or containing water and air pollution in Tsumeb and surroundings.
“The sale is on track to close as planned in the third quarter of 2024, subject to completing the documentation regarding the revised purchase price and proposed tolling arrangement as disclosed in the Company’s Management’s Discussion and Analysis and news release published on 1 August,” Dundee said.
Dundee Precious Metals Inc. is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Serbia and Ecuador.
Dundee has from June last year to June this year transported 198 068 tons of bulk copper complex concentrate, 34 839 tons of blister copper and 255 929 tons of sulfuric acid via TransNamib’s railway services.
The company has transported a total of 390 000 tons of bulk copper complex concentrate, blister copper, and sulfuric acid in 2022, and 430 000 tons in 2023, marking an increase of 40 000 tons from the previous year.
For the current production target, the company is smelting between 200 000 to 230 000 tons of copper containing concentrates.
Dundee aims to increase the volume of goods transported via rail upon TransNamib addressing the existing challenges. Currently, approximately 90% of its concentrate is transported by rail through TransNamib, with the remaining 10% by road.
