Aim-listed metals processing company Jubilee Metals has entered into a further long-term, more-than-ten-year mine life platinum group metals (PGMs) feed supply agreement with a chrome mining customer, thereby expanding its PGM operations to the eastern limb of the PGMs-rich Bushveld Complex.
To date, Jubilee’s PGMs operational footprint has been largely limited to the western limb, one of the two main PGM areas in South Africa.
The eastern limb has been a key focus of Jubilee to expand its PGMs reach and operational capacity, with the new PGMs supply agreement providing access to this area offering a platform to pursue further growth opportunities.
The supply agreement is based on the LG6 chrome reef known for its high rhodium content, accounting for about 12% of produced PGM ounces compared with as low as 7% of other chrome reefs.
The supply agreement has secured the rights to long-term PGMs feed supply of an estimated 16 500 t a month with the potential to produce up to 14 500 oz/y of PGMs.
The plan is to initially process the increased PGMs feed at Jubilee’s expanded Inyoni PGM operations; however, consideration is being given to implementing a dedicated processing facility on the eastern limb.
The supply agreement offers a minority earnings participation to the chrome mine partner, providing it with exposure to the PGMs value, which also enhances the partner’s earnings potential, Jubilee notes in a statement.
In addition to the supply agreement, Jubilee has also acquired a further 255 000 t of PGMs-containing chrome tailings, equivalent to the production of about 12 300 oz of PGMs, produced from the processing of LG6 chrome reefs, which further increases Jubilee’s existing surface PGM tailings.
Jubilee CEO Leon Coetzer says the new supply agreement also demonstrates the company’s ability to win and form partnerships with key chrome mining clients, added to which Jubilee is excited to replicate the success of its Inyoni operation in the eastern limb region.
“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 says that with a total processing capacity of 250 000 t a month of chrome ore and tailings, this will play a key role in providing a continued sustained chrome and PGMs feed.