Name and Location
Tsumeb sulphuric acid plant, Namibia.

Client
Dundee Precious Metals (DPM).

Project Description
The project involves the construction of a state-of-the-art sulphuric acid plant for the copper-producing Tsumeb smelter.

The project is aimed at eliminating problematic sulphur dioxide gas that is released during the copper smelting process. The plant will capture and convert sulphur dioxide into a value-added product, sulphuric acid, which will be sold to Namibia’s uranium companies for use in their production processes.

The facility will be capable of producing between 270 000 t/y and 340 000 t/y of acid.

Value
The cost of the project has increased from $204-million to $240-million.

Duration
Construction of the facility is expected to be completed in September 2014.

Latest Developments
DPM reported in October that the installation of the sulphuric acid plant at the Tsumeb smelter was progressing well, with engineering 60% complete, all long-lead items bought and the earthworks component of construction complete.

The total capital cost to complete the acid plant currently under construction, including owner's costs, was estimated at $240-million, up from the initial estimate of $204-million.

This increase was primarily attributed to higher than expected costs associated with site preparation, including demolition, earthworks excavation, foundation preparation, larger construction camp infrastructure and related operating costs, unexpected expenses relating to the removal of asbestos encountered during demolition and a stronger Euro.

The key aspects of the plant upgrades, which address smelter fugitive emissions, have been completed and the second oxygen plant, which allows for increased, cleaner production, was expected to start producing oxygen by the end of October.

Key Contracts and Suppliers
Outotec (construction contract).

On Budget and on Time?
The increase in the cost of the project has not put it at risk and the Tsumeb sulphuric acid plant remains on track for commercial operations and acid deliveries to start in the fourth quarter of 2014, as agreed with the Namibian government.

Contact Details for Project Information
Dundee Precious Metals, tel +264 61385000 or fax +264 61 35001.
Outotec, tel +27 12 649 0100 or fax +27 12 649 0123.