Nevsun Resources Ltd. (“Nevsun”) is headquartered in Vancouver, Canada and through its wholly and majority owned direct and indirect subsidiaries holds a 60% ownership interest in the operating Bisha Mine in the country of Eritrea, which is in East Africa adjacent to the Red Sea. In late 2013 it transitioned to commercial copper production. Commencing in mid-2016, the mine will also be able to produce zinc concentrate. It will produce both copper and zinc concentrate from mid-2016 until the end of its current mine life, which is expected to be in 2025. The Company also acquired Reservoir Minerals in June 2016 and is now developing the Timok copper-gold project in Serbia.
The Bisha Mine is owned and operated by Bisha Mining Share Company (BMSC), an Eritrean registered entity. Nevsun Resources (Eritrea) Ltd., an indirect, wholly-owned subsidiary of Nevsun, directly owns 60% of the issued and outstanding shares of BMSC. The remaining 40% of the issued and outstanding shares of BMSC are owned by the ENAMCO, an Eritrean entity owned by the State of Eritrea.
Customers and Markets
Nevsun’s customers are copper and zinc smelters, and concentrate traders. Sales are from zinc and copper concentrates. The customer base consists of companies operating in China, India, Europe and globally.
BMSC has a comprehensive and relatively static supply chain network of local and international companies and contractors that provide the Bisha Mine with mining-related supplies and services. Approximately one third are Eritrean registered companies. These companies and contractors provide goods and services ranging from fuel supply to aviation and transportation/trucking services, food services, equipment and parts, construction and project management, security, and telecommunications.