ZAMBIA – Jubilee Metals has signed a joint venture (JV) agreement with a private Zambian company to secure the rights to process two-million tonnes of copper run-of-mine (RoM) material containing in excess of 2% copper, in line with its stated strategy to expand operations in Zambia.

Under the JV agreement, there is further potential to increase the supply of copper ore to about four million tonnes.

The total project capital is estimated at US$15 million, to be invested over a period of 12 months, which Jubilee plans to fund using its cash reserves and access to debt funding, leveraging off its existing balance sheet.

“This JV agreement offers tremendous earnings potential for Jubilee. The project has been a key target for Jubilee to drive the ramp-up in our copper production while we are implementing our previously announced project Elephant,” comments Jubilee CEO Leon Coetzer.

He indicates that the combination of easily accessible large surface resources, together with a fully operational copper refinery, offers the company the potential to replicate, at a larger scale, the success it is achieving with its platinum group metals and chrome operations in South Africa.

“The combination of easily accessible large surface resources, together with a fully operational copper refinery, offers us the potential to replicate, at a larger scale, the success Jubilee is achieving with its PGM and Chrome operations in South Africa.

“Our exceptional in-house processing and metals recovery abilities are core to this success.”

The project will target the near-term production of copper concentrate through a dedicated newly constructed copper concentrating facility for which Jubilee has completed the design.

The processing facility will be built on a brownfield site adjacent to the tailings and will be commissioned in two phases, with the first copper concentrate and revenues expected within four months.

“For Jubilee to have entered into this JV Agreement so soon after announcing Project Elephant is testament to a period of intensive work by our team and I would like to thank everyone for their efforts,” added Leon.

“We have already completed the designs for our Processing Facility and engaged with key equipment suppliers to accelerate the implementation of Project Roan. I am confident that we are able to fund the capital required for the Project from our own strong cash reserves and our ability to raise project debt.

“Our innovative designs allow us to commence production of the first copper concentrate within four months while we complete the remainder of the Processing Facility to ramp-up to full capacity over the following eight months. The additional copper units this Project brings to our Sable Refinery ensures we are able to maintain a strong margin for our copper cathode.”

The additional copper units supplied to Jubilee’s Sable refinery hold the potential to significantly enhance the earnings margin, targeting a unit cost of about US$4 000/t of copper cathode, offering a potential payback of the project capital within one year.

The processing facility is strategically located to access the large potential of third-party copper ore in the area.

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