Tsumeb businesspeople want share from smelter sale

A purchase agreement between Dundee Precious Metals and China's Sinomine Resources Group for the ownership of a copper smelter in Tsumeb is once again in the spotlight after businesspeople in the town have demanded a share of the proceeds.

The Namibian Competition Commission (NaCC) has yet to approve the sale transaction.

The Tsumeb Business Consortium has approached the commission and has insisted that the outstanding issues be addressed before Dundee is allowed to leave Namibia. In a letter, the consortium's CEO and former member of parliament Engel Nawatiseb demanded that government hold Dundee liable for environmental damage, and especially for the fact that arsenic is still stored on the smelter's premises.

"Every Tsumeb resident must be medically examined for arsenic," he said.

There are also claims by current and former smelter employees that they suffered exposure and injuries due to arsenic, which have still not been settled.

‘Running away’

Nawatiseb claimed Dundee also promised Greyhorse Mining a 10% share in the smelter in a purchase contract for Farm Kameelputt Number 278, which was never fulfilled. "They are busy selling the smelter and running away," he said.

According to Nawatiseb's letter, the businesspeople also represent Tsumeb's community and descendants in their quest for justice for the environmental damage caused by arsenic and chemicals dumped in the town and surrounding areas.

He further expressed concern about what will happen to the existing arsenic storage dam when Dundee leaves the country.

Meanwhile, environmental activist and chairperson of EarthLife Namibia Bertchen Kohrs agreed that arsenic is the biggest concern regarding the smelter. She said Dundee bought the smelter in 2010 under the condition that the Canadian-listed company was not responsible for historical pollution.

Nevertheless, Dundee has already been using the smelter since 2007 to smelt copper ore from Chelopech in Bulgaria, which is rich in arsenic content, in Tsumeb.

Although this particular ore has not been imported since January, Dundee imports ore from Peru and other South American countries that also contains arsenic. According to Kohrs, the Tsumeb smelter, one of the only ones on earth where complex copper ore is processed, releases arsenic trioxide as a waste product.

The storage of the arsenic trioxide in large hessian bags on the premises is a major source of concern as the wind spreads the dust widely from open and broken bags, according to her.

In 2016, Earthlife released a damning report - ‘Dirty Precious Metals’ - and urged government and Dundee to clean up the land in Tsumeb before the historic pollution sinks to groundwater level and brings an end to the town.

Investigation process

NaCC spokesperson Dina //Gowases confirmed that the commission has not suspended the purchase contract. She said the commission received Nawatiseb's letter, but added that this is part of the ‘normal process’ and that other stakeholders can also approach the NaCC.

The investigation process continues and the NaCC will send a delegation to Tsumeb to discuss the issues in person, and also to meet with both parties involved in the purchase transaction, she explained.

"The parties will have an opportunity to respond, and after that, we will see if there are other ailments. We may even organise a stakeholder conference if necessary.”

If it is found that the concerns of Tsumeb's residents are valid, and if the transaction is still beneficial for the economy and the sector concerned, the NaCC can still approve the purchase agreement with conditions, she said.

In that case, an enforcement programme will be launched to ensure that the conditions are met, and if not, permission for the transaction can still be withdrawn, //Gowases assured.

Questions to Dundee went unanswered.

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