In the half year to December 2024, Jubilee’s chrome concentrate production reached a record half year high, increasing by 35.7% to 974 659 tons.
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Tawanda Karombo
Jubilee Metals Group has entered into a partnership with a local miner in a bid to address the mounting piles of platinum group metals (PGM) feedstock at its South African operations.
This agreement, announced on Wednesday, is set to facilitate the processing of at least 18 000 tons of surplus material monthly, marking a significant step in Jubilee's operational efficiency.
Jubilee has copper operations in Zambia as well as PGM and chrome operations in South Africa.
“Our preference is to partner with existing PGM producers to process this excess stock rather than investing further capital to expand our own PGM capacity,” said Jubilee CEO, Leon Coetzer.
Although Jubilee did not name the South African PGM producer it has partnered for this agreement, Coetzer said transaction offers the company “the opportunity to immediately commence with the processing of our excess PGM” material.
He said it also has “the effect of increasing our production capacity by as much as 32%” with no additional capital.
Surplus surface stock of PGM bearing material has piled up as a by-product on the back of a sharp increase in chrome production.
In the half year to December 2024, Jubilee’s chrome concentrate production reached a record half year high, increasing by 35.7% to 974 659 tons. The company says it will exceed its full year guidance of 1.65 million tons.
The increased PGM processing capacity under the new agreement equates to an estimated 11 500 PGM ounces per annum assuming a feed rate of a maximum capacity of 30 000 tons per month.
Earnings generated from the new joint venture agreement to process surplus feedstock from Jubilee in SA will be shared equally with the processor.
“In the first half of our current financial year, construction and commissioning of the two new chrome processing modules at Thutse was completed and commissioned successfully,” explained Coetzer.
“These expanded chrome operations have contributed to an increasing PGM surface stock produced as a by-product from the chrome operations.”
According to Jubilee, its chrome and PGM business in SA have proactively reacted to the sharp decline in the chrome market prices by successfully increasing both operational efficiencies and overall throughput.
In the first half period to December 2024, Jubilee’s chrome operations in SA raised output to 974 659 tons on the back of improved efficiencies while PGM production at 18 435 ounces benefited from better quality feed.
The company said it was now on track to achieve and exceed its chrome concentrate production guidance of 1.65 million tons, and the PGM production guidance of 36 000 ounces.
In Zambia, Jubilee’s copper units production reached 1 454 tons compared to the prior year contrasting period’s output of 1 683 tons although this was below the revised first half-year production target of 1 800 tons. The missed target reflected “the impact” of power constraints in Zambia due to depleted water levels at Kariba.
Copper run-of-mine (ROM) and in process stock for Jubilee also increased sharply, reaching 1.21 million tons containing an estimated 8 466 tons of copper units now earmarked for future processing.
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