Jubilee Metals Group has entered into a third-party ROM chrome ore offtake agreement that fully commits its Windsor chrome beneficiation plant for the next three years, with an option for this to be extended further.
Under the terms of the Offtake Agreement, Jubilee commits to the production of 40 000 tonnes per month of chrome concentrate or, subject to the chrome content in the ROM, saleable chrome concentrate, while also retaining the rights to all discard material including the contained PGMs.
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In addition, Jubilee has also successfully entered into a joint venture agreement (“JV Agreement”) with a privately held South African company (JV Partner) to secure the rights to a further 35 000 tonnes per month chrome processing capacity.
Under the JV Agreement Jubilee will assume operational control of the Windsor 8 facility while also committing to upgrade it by incorporating Jubilee’s processing solutions.
Leon Coetzer, CEO of Jubilee, comments:
“Jubilee continues to aggressively drive its expansion across both its South African and Zambian operations. Our significant progress in Zambia is followed by the successful implementation of these two key agreements supporting the expansion of our South African chrome and PGM operations. These agreements have been secured on the back of Jubilee’s track record of continuously driving to set new industry standards.
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“The Offtake Agreement, which supports Windsor’s capacity to produce 40 000 tonnes per month of chrome concentrate, secures not only a constant feed source for Windsor under a protected operational margin, but also significantly increases Jubilee’s surface PGM resources from the discard of the chrome operations.
“The successful completion of the Offtake Agreement is credit to the Jubilee team’s ability to consistently achieve exceptional chrome recovery efficiencies well above the norm in the industry.
“With Windsor fully committed to working at full capacity, Jubilee has also successfully secured Windsor 8 under a JV Agreement, being the rights to a further 35 000 tonnes per month of chrome processing capacity.
“The new Facility and JV partner were carefully selected to establish a presence in a strategic location which will provide Jubilee with further opportunities to increase our chrome ore supply.”
- Jubilee secures third party ROM Offtake Agreement for Windsor targeting the production of 40 000 tonnes per month of chrome concentrate for the next three years
- The Offtake Agreement secures supply of quality feed to Windsor and supports 100% operating capacity for the next three years, while continuing to further supplement the existing PGM feed material to Jubilee’s PGM plants
- Jubilee has locked in a chrome sale price for the chrome production under the Offtake Agreement to secure a firm chrome earnings margin in addition to the earnings generated by the recovery of PGMs from the chrome discard
- Jubilee also executes a JV Agreement to secure Windsor 8, being the rights to an additional 35 000 tonnes per month chrome processing capacity at the Facility
- The Facility is strategically located to provide Jubilee with more opportunities to secure further third-party ROM supply and associated PGM material
- Commencement of production at Windsor 8 is targeted by end September 2020
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