Jubilee reports record chrome production in third quarter
Metals processor revises copper guidance due to delays in the Roan expansion in Zambia
Diversified metals processor Jubilee Metals, with operations in SA and Zambia, produced a record 408,710 tonnes of chrome in the third quarter, despite this being a quarter traditionally known for lower production rates due to the January holiday period.
March set a record monthly production of 145,102 tonnes of chrome concentrates, Jubilee said in an operational update yesterday.
Year-to-date chrome concentrate production increased 19.2% to 1.126-million tonnes, it said.
In SA its platinum group metals production quarter on quarter reduced to 8,339 ounces (oz) from 10,131 oz in the second quarter, mainly due to reducing available stock of lower grade feed material.
The year-to-date 6E PGM production was 3.6% lower at 28,583 oz.
“Our SA chrome operations have delivered an exceptional performance, setting new record production levels for both the quarter and our monthly output for March 2024,” CEO Leon Coetzer said.
“The team’s performance speaks to our renowned technical and processing capabilities supported by the modular expansion approach.
“The processing efficiencies underpinning this performance continues to offer additional growth opportunities in this sector.”
Construction of a second chrome processing module at Jubilee’s Thutse Project, with a design capacity to produce 300,000 tonnes of chrome concentrates per annum, remained on track for completion in August, it said.
In Zambia, copper production during the quarter was affected by scheduled construction activities at the Roan concentrator and Sable refinery.
About 691 tonnes of contained copper in cathode and concentrates were produced compared with the second quarter’s 749 tonnes. In-process copper inventory increased to 192 tonnes, which is expected to continue increasing after the commissioning activities at Roan.
Year-to-date copper production increased 68.5% to 2,374 tonnes, supported by accelerated expansion of the operations before the expansion of Roan.
The expansion of Jubilee’s Roan copper concentrator is set to deliver increased production in the current quarter targeting an annual capacity of 13,000 tonnes a year of copper.
Project Roan has experienced a six-week delay in the delivery of the final electrical components.
This will affect the completion of the commissioning of the final circuits, and based on the latest delivery schedules, the team is set to conclude assembly and commissioning by the end of next month.
“We remain firmly committed to replicating the success of this modular expansion strategy at our Zambian operations.
“I am encouraged by the team’s ability to overcome the final frustrating logistical difficulties that have challenged the completion of Project Roan.
“Project Roan offers us the ability to significantly step up our copper production in Zambia within the current quarter,” Coetzer said.
The group executed two small-scale miners’ partnership agreements offering the potential to deliver first material to the upgraded Roan and Sable from June.
Jubilee is in advanced discussions to conclude three further copper partnership agreements to potentially secure a total of five small-scale copper mine partnership agreements, which combined would offer the potential to deliver copper units that far exceed the installed 16,000 tonnes per annum copper processing and refining capacity in Zambia.
Jubilee said its large surface copper Waste Rock Project continued to develop in partnership with International Resources Holding from Abu Dhabi.
“The potential of these projects combined sets Jubilee on a path to far exceed its initial target of 25,000 tonnes per annum of copper over the next two years.
“Jubilee is well-positioned to continue its growth trajectory,” he said.
“With robust operations in SA and a solid foundation for growth established in Zambia, Jubilee is well-positioned to deliver a strong fourth quarter performance, with production increases expected across all commodities.”
The company maintained its chrome and PGM production guidance, at 1.45-million tonnes of chrome concentrates, and 40,000 oz to 42,000 oz 6E PGM for the current financial year.
However, it revised copper guidance to 3,250 to 4,000 tonnes taking into account the delay to complete the Roan expansion.
Last year, it produced 2,923 tonnes. At the end of the second quarter its guidance had been 5,850 tonnes pending confirmation of the manufacturing timeline of the electrical component delaying the frontend upgrade of Project Roan.