Jubilee has announced an update on progress at its copper operations in Zambia, specifically the first copper concentrate for refining at Jubilee’s Sable Refinery from Project Roan which has been delivered on schedule.
Leon Coetzer, CEO of Jubilee, comments:
“The successful delivery on time of copper concentrate from Project Roan to the fully operational Sable Refinery is the first major step in our commitment to achieve our targeted production of 25 000 tpa of copper within the next four years, and taking a leading role in the processing of surface tailings in Zambia.
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“Project Roan is the first of three copper processing facilities that we target to implement to achieve this goal. Completion of Phase 1 on schedule demonstrates our team’s ability to deliver on our goals in a new jurisdiction.
“It provides me with great confidence that we will see significant success as our copper strategy is further implemented.
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“Alongside the continued performance of our South African PGM operations, the targeted significant ramp up of our copper operation in Zambia is expected to further improve on Jubilee’s recently published record interim results for the six-month period to 31 December 2020, generating long term, quality earnings.
“Looking ahead to next steps, I am confident of the completion of Phase 2 of Project Roan on time during Q3 2021, which will further increase the copper concentrate being delivered to the Sable Refinery.
“With Project Elephant progressing simultaneously and on track to enter the execution phase of the project by August this year, I look forward with confidence to update shareholders as we progress.”
- Project Roan commences with the production of intermediate copper concentrate for refining at Jubilee’s Sable Refinery
- Project Roan completes Phase 1 of 3 Phases to allow early production of intermediate copper concentrate while construction of Phases 2 and 3 remain on target
- Sable Refinery is fully operational and ready to refine product received from Project Roan – targeting an additional 240 tonnes of copper units and stepping up to 400 tonnes of copper units per month at completion of Phase 2
- Phase 2 of Project Roan targets to commence commissioning during early Q3 2021 to produce a higher-grade intermediate copper concentrate to further increase the production of copper units prior to the completion of Phase 3 expected during Q1 2022.
- In addition, the Sable Refinery has concluded a long-term offtake agreement for third party Run-Of-Mine (“ROM”) copper containing material targeting to ramp-up to an additional 150 tonnes of copper units per month by June 2021
- Copper prices continue to be buoyant trading at just under $10 000 per tonne at the time of writing and with current operating margins, early earnings from copper and cobalt production are set to increase
- Completion of the design work for Project Elephant progressing and remains on track to enter the execution phase for the project by August 2021
Looking forward, Phase 2 of Project Roan is targeted for commissioning during Q3 2021 which will further increase the amount and quality of intermediate copper concentrate delivered to the Sable Refinery for processing.
The continuing rebound in the copper price is seeing it at a near 10-year high at the time of writing with analysts predicting further significant growth over the next 12-24 months driven by several long-term trends.
An increased environmental agenda globally and electrification are at the centre of this with the proliferation of electric vehicles, the increased use of renewable energy sources, energy efficiency and increased consumption of electronics.
Project Elephant update
The completion of the design work for the Company’s second copper processing facility, Project Elephant, whereby Jubilee has secured the rights to approximately 150 Mt of copper containing surface tailings, is progressing well and remains on track to enter the execution phase for the project by August 2021. Project Elephant targets to reach the production of 12 000 copper units per annum in addition to Project Roan by the end of 2022.