CHAMWE KAIRA
Following the announcement Dundee Precious Metals Tsumeb has decided to undertake a strategic review of its Tsumeb operation, including a potential sale, the Windhoek Observer looked at the possible impact this move would have on the Namibian economy and the local impact on the town of Tsumeb.
Dundee said given that the smelter is no longer expected to process any Chelopech concentrate from its subsidiary in Bulgaria, commencing in 2024 and as a result, it is no longer seen as strategic to DPM’s asset portfolio.
Statistics from the Chamber of Mines of Namibia showed that local procurement spend by the company was N$1.4 billion in 2022.
Dundee said given that the smelter is no longer expected to process any Chelopech concentrate from its subsidiary in Bulgaria, commencing in 2024 and as a result, it is no longer seen as strategic to DPM’s asset portfolio.
In terms of wages and salaries, the company paid N$585 million in 2022. In terms of permanent employees at the end of 2022, this totaled 543 and there were 642 contractors. In 2023, the smelter processed 189 000 tonnes of copper concentrate. The company expects to process up to 230 000 tonnes of copper concentrate.
Dundee said as a result, the assets and liabilities of Tsumeb have been presented as held for sale in the consolidated statement of financial position as at 31 December 2023 and the operating results and cash flows of Tsumeb have been presented as discontinued operations in the consolidated statements of earnings (loss) and cash flows for the years ended 31 December 2023 and 2022.
Complex concentrate smelted in the fourth quarter of 2023 of 67 891 tonnes was 26 056 tonnes higher than the corresponding period in 2022 reflecting improved operating performance as a result of the maintenance work which occurred in the third quarter of 2023, compared to a 17-day shutdown to repair a water leak in the off-gas system and instability in the power grid as a result of abnormally heavy rainfall in December 2022.
Dundee said the cash cost per tonne of complex concentrate smelted in the fourth quarter of 2023 of US$320 was $123 lower than the corresponding period in 2022 due primarily to higher volumes of complex concentrate smelted reflecting improved operating performance following the Ausmelt furnace maintenance shutdown, partially offset by lower sulphuric acid by-product credits.
Cash cost per tonne of complex concentrate smelted in 2023 of US$414 was US$49 lower than 2022 due primarily to higher volumes of complex concentrate smelted and a weaker rand relative to the US dollar, partially offset by lower sulphuric acid by-product credits.
