Jubilee Metals signs JV as part of Zambia expansion
Jubilee Metals has signed a copper processing agreement with an undisclosed private Zambian company as part of its expansion.
Thanks to the joint venture agreement, the company will gain the ability to process two-million tonnes (Mt) of copper run-of-mine (RoM) material.
The agreement will also spark an increase in the supply of copper ore, reaching approximately four-million tonnes.
The company would target these levels of “near-term production” by utilising a new copper concentrate processing facility in the nation.
Jubilee Metals has said that the forthcoming facility will be commissioned in more than one phase, will be constructed on a brownfield site adjacent to the tailings.
It is anticipated to take around four months for the first copper concentrate to be produced by the facility.
Leon Coetzer, CEO of Jubilee Metals, said: “This JV Agreement offers tremendous earnings potential for Jubilee.”
“The project has been a key target for Jubilee to drive the ramp-up in our copper production while we are implementing our previously announced Project Elephant.
“This transaction complements the already secured large copper resource and will provide us with earnings in the near term.
“The combination of easily accessible large surface resources, together with a fully operational copper refinery, offers us the potential to replicate, at a larger scale, the success Jubilee is achieving with its PGM and Chrome operations in South Africa.
“For Jubilee to have entered into this JV Agreement so soon after announcing Project Elephant is testament to a period of intensive work by our team and I would like to thank everyone for their efforts.”
In September last year, the company completed its previous joint venture with platinum group metals, with the creation of a recovery plant for PGM’s South African operations.
About Jubilee Metals
The company and group has operations across several southern counties of Africa, and targets places as far is Europe, North and South America, and Australia, amongst other areas.
It is an industry-leading metal recovery business which has an eye for the treatment and recovery of the following: mine tailings, waste, slag, slurry and other secondary materials generated from mining operations.
The company’s strategy is clear: it aims to secure “low capital intensive, long-term commodity production from mine surface waste materials with reduced risk and capital outlay when compared to traditional mining techniques”.
Low carbon world needs $1.7trn in mining investment
According to a new report from consultancy Wood Mackenzie, mining companies need to invest nearly $1.7trn in the next 15 years to help supply enough copper, cobalt, nickel and other metals needed for the shift to a low carbon world.
Cutting carbon emissions
The United States, Britain, Japan, Canada and others raised their targets on cutting carbon emissions to halt global warming at a summit in April hosted by US President Joe Biden.
Meeting those targets will need large-scale deployment of electric vehicles, storage for power generated from renewables and electricity transmission, all of which require industrial materials, such as lightweight aluminium and metals used in batteries such as cobalt and lithium.
Wood Mackenzie analyst Julian Kettle calculated miners needed to invest about $1.7trn during the next 15 years to “deliver a two-degree pathway - where the rise in global temperatures since pre-industrial times is limited to 2°C”.
“At an industry level, there seems to be reticence around investing sufficient capital to develop future supply at the pace and scale demanded by the energy transition (ET),” he said.
Mining firms are wary of making heavy investments after their experience of the last decade when they invested in new capacity just as demand peaked, leading to a collapse in prices and revenues. They also need to please investors, who are unlikely to want to see dividends diverted to capital spending.
Rising demands of investors related environment, social and governance (ESG) issues further add to the challenge.
Australia, Canada and Western Europe carry a low ESG risk but some of the best resources are in high-risk areas, such as Democratic Republic of Congo, which sits on about half the world’s cobalt reserves according to the U.S. Geological Survey. “Given the need to meet tough decarbonisation and ESG targets, Western governments, lenders, investors and consumers will need to get comfortable operating in jurisdictions where ESG issues are more complex,” Kettle said.
Kettle said government support was needed to help miners comply with ESG issues to ensure production from high-risk areas was conducted in an acceptable way to consumers.
“Then, and only then, will the West be able to secure sufficient volumes of the raw materials needed to pursue the energy transition in the timescales envisaged.”