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), opens new tab 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), opens new tab 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
2 hours ago
- The Guardian
Kenya tells tea factories to cut ties with Rainforest Alliance due to costs
The Kenyan government has told its tea factories to stop working with the Rainforest Alliance because it says the costs involved in securing the ethical label don't add up for farmers. The non-profit organisation is one of the world's most recognisable certification schemes with its green frog seal on food packaging a sign consumers 'can feel confident that these products support a better world'. However the world's third largest tea producer has ordered tea factories to suspend certification work because the cost is adding to the financial strain on struggling smallholders. A recent Fairtrade Foundation poll found only one in five tea workers and farmers in Kenya are earning enough each month to support their families with essentials. In a memo issued after an industry summit, the agriculture principal secretary, Paul Ronoh, said the 'burden of implementation' of the Rainforest Alliance scheme was vested on tea factories then 'cascaded to the tea farmers and growers'. This cost 'ordinarily should be met by the customers', Ronoh said. Rainforest Alliance is a global non-profit organisation that works to promote sustainable agriculture, forestry and responsible business practices. The green frog seal appears on nearly 240 brands and is almost ubiquitous in UK supermarket tea ranges with big names including Tetley, PG Tips and Yorkshire Tea among those signed up. About half the tea consumed in the UK comes from Kenya. The widespread demand for ethical certification is linked to the reputational risk of sourcing from tea-producing regions with a long list of problems. These include low wages, unsafe working conditions, gender inequality and environmentally unsustainable practices. In addition, countries such as India and Kenya are grappling with climate crisis-related weather changes. However critics complain that while buyers for western markets only want to buy certified tea they rarely offer to pay a premium for it. While UK consumers are happy to splurge on coffee, the same is not true of tea. The average price of a teabag is 'just 2 or 3p' despite the fact that the cost to grow and pick tea is increasing, according to a recent Fairtrade Foundation report on the subject. Although Rainforest Alliance facilitates certification, it does not set the fees charged by external auditors who evaluate whether growers meet its 'sustainable agriculture standard'. The cost of certification depends on factors such as farm size, with growers often grouping together. For a smallholder-managed tea factory the annual cost is estimated to be about $3,000. This could come down however as a streamlined process that cuts the preparation work involved in an audit is being introduced this year. Ronoh said that as the Rainforest Alliance logo 'had not demonstrated solid impact commensurate to the costs of implementation, the meeting resolved to suspend the scheme with immediate effect'. Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Tea is a major cash crop for Kenya and the decision comes as the country grapples with the knock-on effect of a moribund tea price on the millions of people who rely on it for their livelihood. The Rainforest Alliance says it is engaging with the State Department of Agriculture in Kenya to 'gain clarity and to work towards a joint resolution quickly'. It has contacted certificate-holders to assure them that the endorsement remains valid until the expiration date, meaning 'farmers are able to sell their tea as certified'. A spokesperson said: 'We remain committed to supporting in Kenya to the fullest extent possible, and our tea brands and companies have communicated that they remain fully committed to continuing to purchase Rainforest Alliance certified tea.' The Kenyan government is said to be considering putting in place a localised certification model. It would likely have similar sustainability goals but lower compliance costs and less administrative complexity. A spokesperson for the Ethical Tea Partnership (ETP), an NGO focused on tackling problems in the tea sector, said it hoped the Kenyan suspension would be 'short-lived and that a solution to this current impasse will be found'. Certification is a 'critical tool to allow all stakeholders in the tea supply chain to ensure that the workers, farmers and communities who rely on tea for their livelihoods are being treated fairly', the ETP added.
Reuters
a day ago
- Reuters
Falling LME copper stocks inflate premium for nearby contracts
LONDON, June 6 (Reuters) - Concerns about the nearby supply of copper on the London Metal Exchange (LME) due to falling stocks in LME-registered warehouses has created a premium for nearby contracts against those with longer maturities. The discounts for nearby LME copper contracts against longer dated forwards flipped into premiums a month ago as higher COMEX prices than on the LME continued to attract metal. The premium of the cash LME copper contract over benchmark three-month futures was last at $75 per ton after jumping to $93 on Thursday's close, highest in two and a half years. This compares with a discount of $63 in early April. "The backwardation indicates that there is some kind of a shortage. Because normally it is in contango," said Dan Smith, managing director at Commodity Market Analytics. Total copper stocks in the LME warehouse system have halved since mid-February to 132,400 tons, the lowest in almost a year. Available stocks, those not marked for delivery, at 54,600 tons are the lowest since July, 2023. The sharp move in the spread on Thursday was caused by fresh cancellations in LME stocks, said Alastair Munro, senior base metals strategist EMEA, at broker Marex. The premium eased on Friday as there were no major new cancellations of warrants, title documents that confer ownership, in Friday's data, he said, even though stocks kept on leaving the LME-registered warehouses. Fuelling worries are recent mine supply disruptions and traders diverting copper metal to the U.S. while Washington investigates the potential for import tariffs on copper. Even though there is no dominant holder of the LME copper warrants ahead of the expiry of contracts on the third Wednesday of the month - something which could concern the market, as of June 4 one party held more than 90% of copper cash contracts, helping to keep the premium elevated.
BBC News
a day ago
- BBC News
Botswana diamond giant Debswana slashes output as demand falls
Botswana's main diamond company has paused production at some of its mines, citing a prolonged downturn in global a joint venture between the government and global mining giant De Beers, saw its sales revenue drop by almost 50% last is the world's largest producer of diamonds by value. The industry accounts for a quarter of the country's total annual income (GDP), according to the International Monetary Friday, Debswana said production this year is being scaled back to 15 million carats - approximately a 40% decrease from its output in 2023. The company, which accounts for around 90% of Botswana's diamond sales expects this reduced output will lead to "significant cost savings" across areas like fuel and a statement, Debswana said it continued to "prudently navigate the challenging market conditions" citing low demand and "emerging pressures such as US-imposed tariffs".The global market for mined diamonds has been experiencing a decline since 2023, partly due to the availability of lab-grown response to this downturn, Debswana paused production at its flagship Jwaneng mine, as well as its Orapa mines, last month. Each mine will be closed for three months in southern African country has for decades been trying to shift its economy away from being dependent on diamond sales, to varying degrees of successive governments have boosted sectors such as tourism, finance and the mining of minerals such as copper, diamond sales still make up three-quarters of Botswana's foreign exchange income is likely to be hit by Debswana's decision to temporarily close its company has stressed that no involuntary job cuts are planned, although it continues to offer voluntary a result of the sustained downturn in the global diamond industry, Botswana will cut its 2025 economic growth forecast to almost zero, a senior finance official was quoted as saying by the Reuters news agency. You may also be interested in: World's second-largest diamond found in BotswanaHow friends became foes in Africa's diamond state'Proud to be young' - Beauty queen, lawyer and Botswana's youngest cabinet minister Go to for more news from the African us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica
