WINDHOEK, June 6 (Reuters) - China's Sinomine Resource

Group said on Friday it has temporarily paused

copper smelting operations at its Tsumeb plant in Namibia,

citing a shortage of concentrate following a rapid expansion in

smelter capacity worldwide.

Sinomine acquired the Tsumeb smelter, one of the few

facilities in the world that can treat arsenic and lead-bearing

copper concentrates, from Dundee Precious Metals ( DPMLF ) in

2024.

The smelter, with capacity to process 240,000 metric tons of

copper concentrate annually, has previously processed metal from

countries such as Chile, Peru and Bulgaria.

Global copper smelting capacity has expanded rapidly in

recent years, outstripping production of the metal whose demand

has been boosted by its use in renewable energy technologies,

including electric vehicles.

Sinomine Tsumeb Smelter CEO Loggan Lou said in a statement

that increased smelting capacity in major copper-producing

regions has "resulted in substantial overcapacity".

"This has led to a shortage of copper concentrate, placing

pressure on smelters worldwide, including Tsumeb," Lou said.

Sinomine plans to upgrade the smelter to enable the

commercial production of multiple critical metals and minerals.

Last September, Sinomine announced that the Tsumeb Smelter

contains 746 metric tons of germanium, a critical mineral

essential for chipmaking, infrared technology, fibre optic

cables, and solar cells.

The smelter is also exploring the addition of germanium and

zinc smelting lines to the smelter.