Tsumeb Smelter to generate N$1.7b from critical metals per year
The Tsumeb Smelter could generate about N$1.7 billion in annual revenue once production of critical minerals -germanium, gallium, and zinc begins in 2026.
The smelter is now 98% owned by China’s Sinomine Resource Group.
In a filing to the Shenzhen Stock Exchange dated 3 September 2024, Sinomine Resource Group reported internal estimates confirming the presence of approximately 746 tonnes of germanium, 410 tonnes of gallium, and 209 459 tonnes of zinc within the tailings and slags at the smelter.
Sinomine has launched a polymetallic recovery project targeting reprocessing around 200 000 tonnes of slag annually.
The company wants to produce about 33 tonnes of germanium ingots, 11 tonnes of industrial-grade gallium, and 10 900 tonnes of zinc ingots annually.
The N$1.7 billion annual revenue estimate is derived from aggregating projected revenues from germanium, gallium, and zinc, using average 2025 prices and optimistic zinc revenue assumptions.
At average 2025 market prices, germanium is trading around US$1 735 per kilogram.
At 33 000 kilograms annually, this output would generate US$57.26 million, equivalent to roughly N$1.09 billion at an exchange rate of N$18.75 to the US dollar.
Gallium, priced at US$475 per kilogram, would yield approximately US$5.23 million, or N$98.9 million for 11 000 kilograms.
Zinc, priced at US$1.375 per kilogram, would generate approximately US$14.99 million, or N$280 million, from 10.9 million kilograms.
Depending on market trends and premiums for refined ingots, zinc revenue could reach up to N$515 million.
Commercial production by 2026
Sinomine has placed the smelter under care and maintenance while preparing for a US$223 million upgrade that will convert the copper facility into a polymetallic processing plant.
The company plans to conduct a feasibility study to add germanium and zinc smelting lines and commence commercial production as soon as possible.
With global demand tilting toward critical raw materials and the decline of third-party copper concentrate feed, Sinomine is repositioning Tsumeb to align with the needs of new, technology-driven supply chains.
Once operational, the facility will produce 33 tonnes of germanium ingots annually.
Germanium is vital for infrared optics, fibre optics, solar panels, and high-speed electronics.
The plant will also produce 11 tonnes of gallium, used in LEDs, 5G electronics, solar energy systems, and aerospace components, per year.
Zinc output is expected to reach 10 900 tonnes annually.
Sinomine has already begun technical design and environmental permitting work for the conversion.
Pilot-scale tests have started, and full-scale engineering and construction are expected to begin in 2026.
The copper smelting facility will remain idle through 2025.
Declining revenue
In 2023, under Dundee Precious Metals, the smelter processed 188 800 tonnes of complex concentrate that year and delivered 26.7 million pounds of copper before operations were suspended.
The average cash cost was US$414 per tonne.
While Dundee reported US$520.1 million in total revenue for the year, most of this came from its gold operations in Bulgaria.
The Tsumeb copper facility contributed between US$80 million and US$100 million annually in previous years.
The smelter is now 98% owned by China’s Sinomine Resource Group.
In a filing to the Shenzhen Stock Exchange dated 3 September 2024, Sinomine Resource Group reported internal estimates confirming the presence of approximately 746 tonnes of germanium, 410 tonnes of gallium, and 209 459 tonnes of zinc within the tailings and slags at the smelter.
Sinomine has launched a polymetallic recovery project targeting reprocessing around 200 000 tonnes of slag annually.
The company wants to produce about 33 tonnes of germanium ingots, 11 tonnes of industrial-grade gallium, and 10 900 tonnes of zinc ingots annually.
The N$1.7 billion annual revenue estimate is derived from aggregating projected revenues from germanium, gallium, and zinc, using average 2025 prices and optimistic zinc revenue assumptions.
At average 2025 market prices, germanium is trading around US$1 735 per kilogram.
At 33 000 kilograms annually, this output would generate US$57.26 million, equivalent to roughly N$1.09 billion at an exchange rate of N$18.75 to the US dollar.
Gallium, priced at US$475 per kilogram, would yield approximately US$5.23 million, or N$98.9 million for 11 000 kilograms.
Zinc, priced at US$1.375 per kilogram, would generate approximately US$14.99 million, or N$280 million, from 10.9 million kilograms.
Depending on market trends and premiums for refined ingots, zinc revenue could reach up to N$515 million.
Commercial production by 2026
Sinomine has placed the smelter under care and maintenance while preparing for a US$223 million upgrade that will convert the copper facility into a polymetallic processing plant.
The company plans to conduct a feasibility study to add germanium and zinc smelting lines and commence commercial production as soon as possible.
With global demand tilting toward critical raw materials and the decline of third-party copper concentrate feed, Sinomine is repositioning Tsumeb to align with the needs of new, technology-driven supply chains.
Once operational, the facility will produce 33 tonnes of germanium ingots annually.
Germanium is vital for infrared optics, fibre optics, solar panels, and high-speed electronics.
The plant will also produce 11 tonnes of gallium, used in LEDs, 5G electronics, solar energy systems, and aerospace components, per year.
Zinc output is expected to reach 10 900 tonnes annually.
Sinomine has already begun technical design and environmental permitting work for the conversion.
Pilot-scale tests have started, and full-scale engineering and construction are expected to begin in 2026.
The copper smelting facility will remain idle through 2025.
Declining revenue
In 2023, under Dundee Precious Metals, the smelter processed 188 800 tonnes of complex concentrate that year and delivered 26.7 million pounds of copper before operations were suspended.
The average cash cost was US$414 per tonne.
While Dundee reported US$520.1 million in total revenue for the year, most of this came from its gold operations in Bulgaria.
The Tsumeb copper facility contributed between US$80 million and US$100 million annually in previous years.
