Sinomine Tsumeb Smelter CEO Loggan Lou has announced a temporary suspension of copper smelting operations, citing severe global market disruptions. The decision follows intensive stakeholder consultations with employees, government officials, and suppliers this week, where Lou detailed unsustainable pressures on the industry.
Rampant expansion of smelting capacity in major copper-producing regions has created global overcapacity, triggering a critical shortage of copper concentrate. This imbalance collapsed spot treatment and refining charges (TCRCs), rendering operations unviable. “To ensure long-term competitiveness, we will pause copper smelting and place the plant under care and maintenance until market conditions recover,” Lou stated.
The suspension includes drastic cost-cutting measures targeting 30–40% reductions, alongside a voluntary separation program for employees. Lou emphasized commitment to Namibian labor laws and transparency: “We will engage openly with all stakeholders throughout this transition.”
Since acquiring the smelter in September 2024, Sinomine Resource Group identified untapped critical minerals on-site. Lou framed the pause as a strategic shift toward becoming “a world-class resource company for new energy industries.” The smelter will now prioritize three flagship projects:
- Multi-Metals Recycling* (environmental clearance secured, Phase 1 production slated for Q4 2025)
- Alkali-Metal Salts Production
- Sulphur Burning Operations
Lou confirmed continued investment in technology upgrades to enable commercial extraction of multiple minerals. Despite operational halts, he urged employees to “stay focused and support each other,” pledging wellness resources during the transition. “Safety remains our priority as we navigate this challenging period responsibly,” he affirmed.
The smelter’s pivot reflects broader turbulence in global copper markets, positioning Sinomine to capitalize on Namibia’s critical mineral reserves once operations resume.