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Jubilee Metals CEO Leon Coetzer. Picture: FINANCIAL MAIL
Jubilee Metals CEO Leon Coetzer. Picture: FINANCIAL MAIL

Shares in Jubilee Metals were up more than 4% in early trade on Monday after the company provided an update on its key copper projects in Zambia.

Jubilee, a diversified metals producer with operations in Zambia and SA, said a crucial factor for successfully executing its copper strategy was securing a stable power supply, a significant challenge in Zambia.

The company recently signed a power purchase agreement with Lunsemfwa Hydro Power Company, which has been implemented, with uninterrupted power being delivered to Jubilee’s operations by last week covering all its processing plants’ power requirements with 100% renewable power.

The Zambian copper strategy centres on an initial processing capacity target of 25,000 tonnes of copper a year, supported by two operational sites — the integrated Sable Refinery and the upgraded Roan Concentrator.

The company aims to use this capacity by bringing its secured copper resources into production through open-pit mining operations and the reprocessing of surface waste.

“Establishing a stable power supply was crucial to maintaining steady progress in our projects,” said CEO Leon Coetzer. “The frequent rolling outages posed an ongoing risk to the stability of our operations, so I am grateful that we have now secured a reliable, continuous power source. This has been a critical factor in achieving design throughput at our new Roan front-end module.”

Coetzer said the Roan front-end module had achieved design capacity, and operations had been handed over to the Roan operational team.

The first copper concentrate from the Roan facility front-end module was produced after the start of production on August 8.

In addition, the Munkoyo open-pit operations began ramping up, targeting 15,000 tonnes of run-of-mine ore a month, comprising 5,000 tonnes of 3.0% high-grade copper ore delivered direct to the Sable Refinery, while the sub 1.0% lower grade copper ore is being stockpiled at site for further processing.

At the large Waste Rock project, with more than 260-million tonnes of surface rock, a commercial trial of 15,000 tonnes processed through Roan’s front-end module was set to begin in November as part of the final due diligence review, he said.

“With upgrades at our Roan Concentrator and Sable Refinery, we are well-positioned to achieve our initial target processing capacity of 25,000 tonnes of copper per year,” said Coetzer.

“The recent milestones, including the ramp-up of our Munkoyo open-pit operation, near completion of our due diligence of Project G, which if successful will be brought into operation within four months, ensure a continued upward drive in our copper output,” he said.

Discussions to secure a further two open pit opportunities are progressing well and Coetzer said he was confident the group could secure further similar opportunities.

“We are nearing the completion of due diligence for our Waste Rock project, with the distinct advantage of conducting a full-scale commercial trial using our new Roan front-end module,” he said.

Jubilee announced last week that businessman Reuel Khoza had agreed to join the board.

Jubilee is growing its copper resource portfolio as an enabler to drive the expansion of its processing operational footprint in Zambia.

The company’s shares were up 4.35% at 120c in early Monday trade on the JSE.

mackenziej@arena.africa

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