Sinomine to Build Copper, Gallium, and Germanium Smelters in Africa: A Strategic Move for Resource Expansion

Sinomine

Chinese diversified mining company Sinomine Resource has announced a bold step in its global resource strategy by unveiling plans to build a copper smelter at its Kitumba mine in Zambia and a germanium/gallium recycling facility at the Tsumeb smelter in Namibia. These investments come as part of Sinomine's ongoing strategy to expand its reach in the mining sector, focusing on copper, germanium, and gallium—key strategic metals for the global market.

Sinomine’s Copper Smelter in Zambia

The first phase of Sinomine’s expansion involves a $562.9 million investment in a new copper smelter at its Kitumba mine in Zambia. The smelter will process 3.5 million tons per year of copper ore, with a production capacity of 60,000 tons per year of copper cathode. The project is set to be completed by late 2026, with a construction period of 1½ years, and will have an expected operating life of 11 years after commissioning. The smelter’s establishment aligns with Sinomine's strategy of expanding its copper resources globally, particularly in Africa, a continent rich in mineral deposits.

Sinomine took control of the Kitumba mine in March and began production in August, marking a significant milestone in its overseas copper operations. The Kitumba project complements Sinomine’s other Zambian ventures, including the commissioning of a second concentrator at the Kasisi copper and gold mine earlier in 2023. This move has significantly increased copper ore processing capacity, further bolstering Sinomine’s growing presence in Zambia.

Expansion in Namibia: Gallium and Germanium Recycling Facility

In addition to copper, Sinomine has also turned its attention to germanium and gallium, two metals that are crucial to industries such as information technology, renewable energy, and aviation. The company is investing $222 million in a multi-metal recycling facility at the Tsumeb smelter in Namibia. The facility will have an annual processing capacity of 200,000 tons and will produce 33 tons per year of zone-melting grade germanium, 11 tons per year of 99.9% industrial-grade gallium, and 10,900 tons per year of zinc. This ambitious project will be built in two phases and is expected to operate for 15 years. However, detailed launch dates are still to be disclosed.

The polymetallic slag at the Tsumeb smelter is estimated to contain substantial quantities of germanium, gallium, and other metals, including zinc and copper, making it an attractive site for advanced metal recycling and extraction. Sinomine’s investment reflects the growing global demand for germanium and gallium, both of which have seen price increases following China’s introduction of export licensing schemes in August 2023. These metals are considered critical for high-tech applications, and their strategic importance has driven companies worldwide to diversify their supply sources.

The Global Significance of Germanium and Gallium

Germanium, used extensively in industries ranging from telecommunications to clean energy, is a strategic resource that is primarily produced in China, which has been reducing its export volume. The global reserves of germanium are estimated at just 8,600 tons, according to the US Geological Survey. Gallium, which is essential for electronics and solar technology, is also in high demand. Sinomine's strategic investments in germanium and gallium facilities will position the company to capitalize on the rising global need for these critical materials, while reducing its reliance on Chinese supply chains.

Conclusion

Sinomine’s investment in copper and multi-metal recycling projects in Zambia and Namibia highlights its forward-thinking approach to securing a diverse range of valuable resources. As global demand for copper, germanium, and gallium grows, Sinomine is positioning itself as a key player in the African mining sector. With an expanding footprint across the continent, the company is set to shape the future of metal production and recycling, supporting industries from renewable energy to electronics.