Jubilee Platinum to process ore from DCM’s South African operations
Jubilee Platinum has signed an agreement to process ore from Dilokong Chrome Mines' (DCM) operations in South Africa.
The agreement replaces all existing agreements relating to chrome processing and platinum group metals (PGM) recovery at DCM.
Jubilee will now operate as an equal joint venture with DCM on all chrome ore, including third-party stocks.
Under the agreement, the company will have the right to a 50% share of all earnings generated from the processing of chrome ore.
Jubilee Platinum CEO Leon Coetzer said: "The agreements bring clarity and certainty to our DCM relationship and collectively double the size of our DCM operation without forfeiting any PGM rights."
Through the agreement, the company’s sole rights have been extended to all PGMs from material at DCM irrespective of source.
The company also signed a third-party ore agreement for the toll-refining of run of mine (ROM) chrome materials.
Coetzer added: "The third-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."
Signed for an initial period of three years with an option for extension, the third party agreement will offer the company a toll processing contract of up to 40,000t a month of ROM material.
As a result, the throughput of DCM plant's spare capacity will be enhanced by more than two times.
In addition, Jubilee will earn the rights to the PGMs in the ore, enabling it to expand its PGM recovery strategy at Dilokong.