Tsumeb smelter capacity to double

AIM-quoted mining group Weatherly International plc has announced its plans to double its smelting capacity following a keystone agreement to process copper concentrate through its Tsumeb copper smelter.

The concentrate will be supplied by Canadian-listed mining company, Dundee Precious Metals Inc (DPM), and the deal will underpin refurbishment work to raise the capacity of the Ongopolo Tsumeb smelter from 25 000 to 50 000 tonnes per year by early 2008. The concentrate will come from DPM’s Chelopech mine in Bulgaria and first deliveries to Tsumeb are expected during the first quarter of next year.According to Weatherly, the expansion of the smelter will be funded through a placing of nearly 17 million new ordinary shares with DPM at a higher price per share, to raise net proceeds of US$8 million (N$56 million).The new share placing is expected to be finalised on or around June 27.Weatherly Chief Executive, Rod Webster said following completion of the placing, DPM will have a 4,7 per cent holding in Weatherly.Under the terms of agreement between the two miners, DPM will supply 20 000 tonnes of copper concentrate per year for three years with a 12-month extension.The Tsumeb smelter is currently processing concentrate using feedstock from Weatherly’s mines, which are Tsumeb West, Matchless and Otjihase, and also from third-party supplies and tolling agreements.”We are particularly delighted to have agreed this deal not only because it represents a milestone in the continued rapid development of Weatherly, but also because we are able to increase our contribution to Namibia’s economic growth,” he said.The concentrate will come from DPM’s Chelopech mine in Bulgaria and first deliveries to Tsumeb are expected during the first quarter of next year.According to Weatherly, the expansion of the smelter will be funded through a placing of nearly 17 million new ordinary shares with DPM at a higher price per share, to raise net proceeds of US$8 million (N$56 million).The new share placing is expected to be finalised on or around June 27.Weatherly Chief Executive, Rod Webster said following completion of the placing, DPM will have a 4,7 per cent holding in Weatherly.Under the terms of agreement between the two miners, DPM will supply 20 000 tonnes of copper concentrate per year for three years with a 12-month extension.The Tsumeb smelter is currently processing concentrate using feedstock from Weatherly’s mines, which are Tsumeb West, Matchless and Otjihase, and also from third-party supplies and tolling agreements.”We are particularly delighted to have agreed this deal not only because it represents a milestone in the continued rapid development of Weatherly, but also because we are able to increase our contribution to Namibia’s economic growth,” he said.