British Jubilee Metals Group PLC announces a new partnership agreement for its PGM and chrome operations in South Africa.
The aim is to expand Jubilee’s operational chrome footprint by a further 360 000 tonnes per annum processing capacity targeting an additional 200 000 tonnes chrome concentrate and 10 000 oz PGM feed to Inyoni, through a new partnership agreement.
The new partnership establishes a long-term relationship directly with a producing mining operation on the western limb of the Bushveld Complex, offering Jubilee greater exposure to the potential earnings of the chrome produced through Jubilee's renowned efficiencies.
"Jubilee's proven processing excellence continues to attract partnerships with large mining companies seeking best-in-class operational processing groups.
"This new partnership agreement presents a more integrated long-term relationship with an existing chrome producer that will offer a stronger integration of the processing solution with the source of the material ensuring a long-term stable production profile. Under this new template agreement, Jubilee is offered a much greater exposure to the earnings derived from the sale of chrome concentrate” says Leon Coetzer, CEO of Jubilee in a press statement.
"At current market prices, the Agreement offers the potential for Jubilee to increase its current chrome earnings margins per tonne of chrome concentrate produced by nearly five-fold compared with the existing chrome toll agreements which achieves only 4% at today's prices”.
"We aim to expand our South African operational footprint by 65% over the next 24 months to reach nearly 2 million tonnes of chrome concentrate annually as we continuously strive to enhance our earnings”, he adds.