The Chinese group Sinomine Resource said on Friday that it had temporarily suspended its copper smelting activities at its factory in Tsumeb, Namibia. The decision is justified by a shortage of concentrate following a rapid expansion of global fusion capacity.

Sinomine CEO Tsumeb Smelter, Loggan Lou, said in a press release that increased smelting capacities in major copper producing regions has “resulted in substantial overcapacity.”

lou said that “this caused a shortage of copper concentrate and put pressure on smelters around the world, including Tsumeb.

Sinomine plans to modernize the foundry in order to commercially produce several metals and minerals.

The smelter has a capacity to process 240,000 tons of copper concentrate per year. Previously, it processed metals from Chile, Peru and Bulgaria

The global copper smelting industry has grown rapidly in recent years. This has led to a rapid increase in production, exceeding the demand for this metal, whose use has been boosted recently by its use in renewable energy generating technologies, such as electric vehicles