24th Aug 2021 10:09
(Alliance News) - South Africa and Zambia-focused metals processing firm Jubilee Metals Group PLC on Tuesday announced the signing of a memorandum of understanding with Mopani Copper Mines PLC, for the implementation of additional copper and cobalt refining capacity in Zambia.
The agreement will be conducted through Jubilee bringing back into operation refining infrastructure which was initially placed under care and maintenance by Mopani.
One refining facility will be established in the north for copper and cobalt concentrates produced by the Kitwe and the Luanshya tailings, while the Sable refinery in the south of Zambia will be dedicated to concentrate produced by Kabwe's copper tailings, and the Roan project which is currently under construction.
This agreement is expected to increase the Jubilee's total refining capacity to an excess of 31,000 tonnes per annum.
For Jubilee, the agreement will allow the company to accelerate the implementation of its copper strategy in Zambia at significantly reduced capital and risk, while Mopani gains additional copper units for its smelting operations.
"I am delighted by the agreement reached which sets into motion the accelerated implementation of our Kitwe and Luanshya copper and cobalt tailings projects to reach even sooner our target of 25 000 tonnes of copper per annum," said Chief Executive Officer Leon Coetzer.
The agreement will see Jubilee refurbish and expand some of Mopani's processing facilities currently not in use and removes the need to build a new processing facility to process the nearby tailings deposits we secured last year. This agreement with Mopani directly improves both our expected project timelines and required project capital while reducing overall project risk through the access offered to existing refining infrastructure," Coetzer added.
Shares in Jubilee Metals were up 9.4% at 14.94 pence each on Tuesday in London, while its Johannesburg shares were 4.5% higher at ZAR3.00.
By Dayo Laniyan; [email protected]
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