Jubilee Platinum is pleased to announce that it has, through its subsidiary Jubilee Tailings Treatment Company, executed a framework, treatment of tailings and chrome ore agreement with DCM and a 3rd party ore agreement for the toll-refining of run-of-mine (ROM) chrome ore.
The agreement cancels and supersedes all existing agreements in respect of chrome processing and PGM recovery at DCM.
The agreement transforms Jubilee Platinum’s DCM operations as an equal joint venture with DCM, on all chrome ore including 3rd party chrome ore.
The agreement now affords Jubilee Platinum the right to 50% of all earnings generated from the processing of chrome ore.
This compares with Jubilee Platinum holding no rights to chrome earnings at the outset of the DCM project.
The agreement further secures Jubilee Platinum’s unencumbered PGM rights from all material processed at DCM irrespective of source.
In addition the ore agreement offers a toll processing contract to Jubilee Platinum of up to 40 000 tons per month of ROM material.
An initial three year term has been agreed between the parties which can be extended by mutual agreement.
The ROM material will use current DCM plant’s spare capacity to more than double current production rates.
Under the terms of the Ore Agreement Jubilee secures the rights to the PGMs in the ore.
The additional PGMs offer Jubilee the opportunity to expand its PGM recovery strategy at Dilokong.
“I am pleased to announce the securing of two major agreements in a single announcement,” says Jubilee Platinum CEO, Leon Coetzer.
“The agreements bring clarity and certainty to our Dilokong Chrome Mines relationship and collectively doubles the size of our DCM operation without forfeiting any PGM rights.
“The 3rd party ore agreement will contribute significantly to the earnings of DCM as we more than double our current throughput without the need to increase existing processing capacities nor increasing the project’s fixed cost component.
The agreement will provide a tolling income to the project in addition to the earnings generated from current chrome sales at DCM.
“We continue discussions with ore suppliers in the region as we strive to consolidate the processing of material in the region,” adds Coetzer.
Feature image credit: Jubilee Platinum