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Jubilee Metals Expands Copper Business in Zambia

Mining News - Published on Mon, 10 Aug 2020

Image Source: Jubilee Metals Copper Zambia
Jubilee Metals Group’s operations in Zambia has signed a Joint Venture Agreement with a private Zambian company securing the rights to process 2 million tonnes copper Run Of Mine material containing in excess of 2% copper. Under the JV Agreement, there is a further potential to increase the supply of copper ore to approximately 4 million tonnes with an additional 2.5 million tonnes of copper containing tailings available for processing. 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 for the construction at a targeted Brownfield site adjacent to the tailings. The Processing Facility will be commissioned in two phases with the first copper concentrate and revenues expected within four months.

Highlights

Jubilee executes JV Agreement targeting the production of an additional 10 000 tonnes equivalent copper units per annum

The Project targets to commence production of first copper concentrate within four months

JV Agreement incorporates 2 million tonnes of in excess of 2% ROM Material with the potential to increase to 4 million tonnes of ROM Material as well as surrounding copper tailings material in excess of 2.5 million tonnes

Under the JV Agreement, Jubilee will construct a new Processing Facility targeting a processing rate of approximately 600 000 tonnes per annum producing copper concentrate for further refining at its Sable Refinery

The total Project capital is estimated at USD 15 million, to be invested over a period of twelve months, which Jubilee targets to fund utilising its cash reserves and access to debt funding, leveraging off its existing balance sheet

The additional copper units supplied to Jubilee’s Sable Refinery holds the potential to significantly enhance the earnings margin, targeting a unit cost of approximately USD 4 000 per tonne 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

The Project is targeted to deliver copper units well in advance of Jubilee’s previously announced copper transaction in Zambia and is significant step towards achieving Jubilee’s stated goal of 25 000 tonnes per annum of copper production

Source :

Posted By : Yogender Pancholi on Mon, 10 Aug 2020
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