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 and transitioned to commercial copper production in December 2013. It will add zinc concentrate production capability, commencing in mid-2016. The Bisha Mine will produce both copper and zinc concentrate through mid-2016, its current anticipated mine life of 2025.
Customers and Markets
Nevsun’s customers in 2014 were copper smelters and concentrate traders. The Company’s copper end-users are spread throughout the world, including China, India, and Europe.
BMSC has a comprehensive and relatively static supply chain network of local and international companies and contractors that provide the Bisha Mine with a broad spectrum of mining-related supplies and services. 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. Ownership 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.