Description of Activities

The Commission resolved to approve with conditions the acquisition by Sinomine (Hong Kong) Rare Metals Resources Co. Limited (“Sinomine”) of shares in Dundee Precious Metals Tsumeb Holding (Proprietary) Limited. 

The acquiring group is a mining group enterprise with a complete industry chain of mineral resources. Its main business and operation cover four segments, EV-lithium material development and utilization, rare and light mineral (cesium and rubidium) development and application, geo-tech services and mining property development. The acquiring group’s operations span over 40 countries and regions in Asia, Africa, Europe, the America, and Oceania. Specifically, it has branches in China, Canada, the United States, The United Kingdom, Norway, Zambia, the Democratic Republic of Congo, Zimbabwe, and Uganda. The acquiring group has no operations in Namibia, nor is it involved in copper smelting industry worldwide. 

Target Undertaking is a holding company for all the issued shares of Dundee Precious Metals Tsumeb (Proprietary) Limited (“DPMT”). DPMT owns and operates the Tsumeb Smelter, which processes copper concentrates and produces blister copper and sulfuric acid. The Tsumeb Smelter occupies a niche as one of the few smelters worldwide capable of treating complex copper-gold concentrates with high gold, silver, and arsenic contents. 

Relevant market: The Secretariat looking at the parties’ activities submits it is not necessary to definitively conclude on the relevant product market definition since the acquiring group does not have separate entities that provide the same products and services as that of the Target Undertaking.

Merger Determination

The Commission found the proposed transaction unlikely to result in the prevention or substantial lessening of competition but that it does raise public interest concerns, particularly regarding pollution, local beneficiation and employment. Thus, the Commission approved the merger subject to pollution, local beneficiation and employment conditions.

However, as stated under section 50 of the Act, this approval does not relieve parties from complying with any other mandatory statutory approvals that any of the parties to this merger must comply with under Namibian Laws.