Jubilee Platinum increases production at Middelburg Smelter in South Africa

2 January 2014 (Last Updated January 2nd, 2014 18:30)

Jubilee Platinum has achieved a ferronickel metal production rate of 35t a day at the Middelburg Smelter operation in South Africa, exceeding their previous record of 26t a day.

Jubilee Platinum has achieved a ferronickel metal production rate of 35t a day at the Middelburg Smelter operation in South Africa, exceeding their previous record of 26t a day.

The company has recently secured funding for the final phase of their smelter renewable programme, which includes the expansion of the Middelburg Smelter operation to three operating ARC furnaces.

Two of the furnaces will be used for the production of ferronickel metal while the third furnace will produce ferrosilicon metal. The expansion will increase the total targeted smelter capacity to 13,900t of metal per annum.

All three furnaces have been fully contracted.

Jubilee Platinum has also entered into a £10m equity finance facility (EFF) with Darwin Strategic, which can be used to expand its access to platinum-containing material over a period of 60 months.

Jubilee said the EFF will support its mine-to-metals strategy and potential acquisitions with a view to further utilising the ConRoast process.

Jubilee Platinum CEO Leon Coetzer said the company will continue to negotiate with firms holding platinum-bearing assets near or at surface to increase its access to materials.

"The EFF funding structure offers the Company the support to access funding when pursuing companies holding such assets," Coetzer said.

In addition to the Middelburg Smelter operation, Jubilee owns 63% of the Tjate Platinum project in the eastern limb of the Bushveld Complex.

Jubilee claims that the Bushveld Complex is considered to be the world's largest, undeveloped defined block of platinum ore.

The property covers 5,140ha over three farms and an independent appraisal claimed that the area features 70 million ounces of platinum group metals and gold.

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