(Alliance News) - Jubilee Metals Group PLC said on Tuesday it had entered into a new partnership agreement that aims to boost its chrome and platinum group metals operations in South Africa.
Under the terms of this agreement, the London-based metal processing company said it had committed to upgrade an existing 360,000 tonnes per annum chrome processing facility, which is located adjacent to the group's operations in Limpopo, South Africa.
Jubilee targets to complete the expansion of this plant to 720,000 tonne per annum within 12 months of commencing operations at the retrofitted facility. The PGM rich tails produced will be processed at the group's expanded Inyoni chrome and PGM facility in Limpopo.
The company has budgeted a capital investment of USD8 million to complete the plant, which will be funded through its own cashflows and balance sheet.
The new agreement establishes a six-year initial partnership that may be renewed for a further four years, the company said.
The agreement is in line with Jubilee's growth target of reaching an annualised production rate of 2 million tonnes of chrome concentrate over the next 24 months.
"The new partnership establishes a long-term relationship directly with a producing mining operation on the western limb of the Bushveld complex, offering Jubilee greater exposure to the potential earnings of the chrome produced through Jubilee's renowned efficiencies," Jubilee Chief Excutive Leon Coetzer said.
Shares in Jubilee rose by 2.1% at 7.35 pence on Tuesday morning in London, while its Johannesburg shares were up 1.7% at ZAR1.80.
By Artwell Dlamini, Alliance News reporter
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Jubilee Metals (JLP)