JOHANNESBURG (miningweekly.com) – JSE- and Aim-listed Jubilee Platinum has increased its stake in South African subsidiary Power Alt.
The mine-to-metal specialist issued almost 1.2-million shares for the final 1.9% stake required to increase its shareholding in Power Alt to 70%, said Jubilee CEO Leon Coetzer.
Over the past few months, Jubilee increased its interest in Power Alt by 19% for a consideration of R13.1-million made over three payments.
The deal enabled Jubilee to maximise its exposure to South African State-owned power utility Eskom’s increasing demand for private energy.
In January, Jubilee’s power purchase agreement value with Eskom had been increased from R12.2-million to R50.1-million a year, after Power Alt achieved its targeted sales of 5.1 MW of generated power into the grid.
The subsidiary had also received approval to increase the generated power for sale to 10 MW, potentially pushing the contract value to R98-million a year.
Jubilee previously noted that the revenue generated through the sale of electricity at Power Alt would offset the cost of electricity used by its smelting operations.