Dundee Precious Metals (DPM) has announced the completion of a feasibility study by SNC-Lavalin (Johannesburg, South Africa) on the installation of a sulphuric acid plant at its copper smelter in Tsumeb, owned and operated by Namibia Custom Smelters, a wholly-owned subsidiary of DPM.

The proposed construction of an acid plant is currently the preferred option to capture sulphur emissions at the smelter.
The first phase of the project, comprising basic engineering, site preparation, final costing and detailed scheduling, has been awarded to Outotec, the global leader in sulphuric acid plant design and delivery.
The capital cost estimate for the project, based on the Outotec tender, is US$167 million, which includes a 30% contingency and excludes off-site infrastructure costs, which NCS is working to mitigate through various third parties. Based on an expected annual smelter production capacity of 240 000 to 310 000 tonnes of concentrate, the acid plant will produce in the range of 270 000 to 340 000 tonnes of sulphuric acid. The project is expected to be financed from DPM’s current cash position and free cash-flow generation which, even at significantly weaker commodity prices, is sufficient to satisfy its existing operating and capital requirements. Commissioning is currently expected to take place during the third quarter of 2014.
The project adheres to the directives issued to NCS by the Namibian government in April 2012, which aimed at improving environmental and workplace conditions at the smelter. The sulphuric acid plant will process offgas from the smelter and the acid produced will be sold into the market through off-take agreements. NCS has entered into a memorandum of understanding with Protea Chemicals Namibia, a subsidiary of Omnia Group and a leading industrial chemicals company with significant presence in sub-Saharan Africa, to assist with the marketing and sale of the acid.
“The construction of an acid plant is the final step in converting our smelter in Namibia to a facility that will operate at international environmental standards,” said Jonathan Goodman, President and CEO of DPM. “We look forward to working with Outotec and utilising their vast experience in acid plant design and construction.”