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Jubilee announces partnership agreement with DCM

5th September 2017

By: Anine Kilian

Contributing Editor Online

     

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JOHANNESBURG (miningweekly.com) – Through subsidiary Jubilee Tailings Treatment Company, JSE-listed Jubilee Minerals has executed a framework, treatment of tailings and chrome-ore agreement with Dilokong Chrome Mines (DCM), as well as a third-party ore agreement for the toll-refining of run-of-mine (ROM) chrome ore.

The agreement cancels and supersedes all existing agreements in respect of chrome processing and platinum group metals (PGMs) recovery at DCM.  

It also transforms Jubilee's DCM operations, as an equal joint venture with DCM, on all chrome ore including third-party chrome ore.   

It affords Jubilee the right to 50% of all earnings generated from the processing of chrome ore. 

This compares with Jubilee holding no rights to chrome earnings at the outset of the DCM project. 

The agreement further secures Jubilee's unencumbered PGM rights from all material processed at DCM, irrespective of the source. 

In addition, the ore agreement offers a toll processing contract to Jubilee of up to 40 000 t/m of ROM material. 

An initial three-year term has been agreed between the parties, which can be extended by agreement.

“The third-party ore agreement will contribute significantly to the earnings of DCM as we more than double our current throughput, without the need to increase existing processing capacities or the project's fixed cost component,” said CEO Leon Coetzer.

The agreement will provide a tolling income to the project, in addition to the earnings generated from current chrome sales at DCM.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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