Jubilee reaches new PGM feed supply agreement and secures new tailings

JUBILEE, a leader in metals processing in Africa, said yesterday that it had acquired more than 10 years of additional mine life through a new platinum group metals (PGM) feed supply agreement with a chrome-mining customer.

The deal would expand its PGM operations to the Eastern Limb of the PGM-rich Bushveld Complex.

“To date, Jubilee’s PGM operational footprint has been largely limited to the Western Limb of the mineral-rich Bushveld Complex, a single area of the two main PGM areas in South Africa. This new long-term supply agreement is of significant strategic value and expands our operations on to the Eastern Limb, providing a platform for further opportunities,” Jubilee chief executive Leon Coetzer said.

In addition, Jubilee acquired 255 000 tons of PGM-containing chrome tailings, increasing Jubilee’s surface PGM tailings.

Meanwhile, at its South African chrome and PGM operations, the final stages of commissioning a chrome beneficiation plant had been entered, with completion anticipated on time, by the end of the second quarter of 2021. The new long-term supply agreement was projected to deliver an additional 16 500 tons PGM-rich feed a month, equivalent to the production of an additional 14 500 PGM ounces a year. The feed material was mainly based on the LG6 chrome reef, which was high in rhodium content.

The 255 000 additional tons was equal to approximate production of 12 300 PGM ounces.

The new 80 000 ton-a-month chrome beneficiation facility, near the Inyoni PGM operations, had entered the final stages of commissioning.

The new chrome facility follows the recently completed Windsor 8 chrome plant, and which combined expands Jubilee’s chrome feed capacity to 250 000 tons a month of both chrome ore and tailings.

The expanded Inyoni PGM operations would increase the processing capacity by 45 percent to 75 000 tons a month.

“The new supply agreement also demonstrates our ability to win and form partnerships with key chrome-mining clients, added to which we are excited to replicate the success of our Inyoni operation in the Eastern Limb region,” said Coetzer.

“We have already demonstrated that the improved efficiencies across our chrome and PGM operations resulted in record production and sustained earnings growth at the South African operations, and we expect this to continue at pace,” he said.

Jubilee’s share price increased 1.69 percent to R3.60 yesterday afternoon. The shares later closed at R3.55.