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.
The Bisha Mine initially went into commercial gold production in early 2011. 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.
Customers and Markets
Nevsun’s customers are copper smelters and concentrate traders. Sales are copper concentrates (90%) and direct-sale of precious metals to refineries. The customer base for copper concentrate is 50% China, 40% India and 10% Europe . Direct sale ores are sold predominantly to China for further upgrading into refined Gold and Silver.
Bisha Mining Share Company 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.
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 outstanding shares are owned by the Eritrean National Mining Corporation (ENAMCO), an Eritrean entity owned by the State of Eritrea.