DU DUNDEE DEE PRECIOUS METALS INC. . TSX - DPM Namibia Custom Smelters www.dundeeprecious.com
The Transaction • Chelopech concentrate to NCS since 2007 • Smelter uniquely positioned and engineered to accept chelo con • Recognised potential risks to Chelopech while smelter not in DPM ownership • Smelter acquired March 24, 2010 • $33M cash and shares and settled $17M in third party obligations • Secures Chelopech future with respect to concentrate processing DUNDEE PRECIOUS METALS INC .
The Operation • Combined Ausmelt and Reverb furnace technology • 3 Pierce Smith Convertors • Supplementary oxygen added to Ausmelt • Significant potential capacity in Ausmelt with more oxygen • Off-gas cooling and capture of dust and particulate metals • Blister copper product shipped to European refineries • Arsenic trioxide by-product manufacturing plant • As 2 O 3 shipped to SA and SE Asia DUNDEE PRECIOUS METALS INC .
The Operation • 190 tpd oxygen plant • Waste heat power generation plus connection to national grid • Slag mill for slag recovery of metal in slag • Licensed best practice hazardous waste disposal facility • Ownership of historic tailings and smelter wastes – Govt. granted legal limitation of historic liability – Rehabilitation work started – Some potential opportunity in residual metal values? • Namibian infrastructure generally good DUNDEE PRECIOUS METALS INC .
Production and Capex • 36,000 tonnes primary concentrate processed Q3 2010 (inc. 17k Chelo) • Capex YTD USD 5M • Expected 2010 Capex USD 8M • Expected Capex 2011 USD 20M DUNDEE PRECIOUS METALS INC .
2010 Focus • Under previous ownership – Facility undercapitalized – Deferred maintenance and environmental controls upgrade – Social license to operate somewhat neglected • 2010 activity since DPM acquisition – Improved community and government relationships – Increased focus on safety, health, environment – Capital into maintenance and urgent environmental improvements • materials handling • gas cooling (additional gas coolers) • dust capture (ongoing bag house upgrades) • Haz waste site – Additional resources applied in operations management and projects – ESIA in preparation – Develop future strategy and project plan DUNDEE PRECIOUS METALS INC .
Future Focus 2011/2012 • Secure the future • Implement “project” strategy to meet production and HSE targets • Best Practice controls on particulate emissions • Reduced fugitive emissions • Increased environmental surveillance and management • Take commercial opportunities and address any risks • Reduce costs and incrementally improve availability and reliability • Increase reliance on Ausmelt technology • Complete sulfur capture and acid production study • Further improvements in community engagement DUNDEE PRECIOUS METALS INC .
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