Leon Coetzer, chief executive of Jubilee announced that 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 secured last year.
Under the project, Jubilee will be able to refine the copper and cobalt concentrates produced at its Kitwe and Luanshya copper and cobalt tailings in Mopani’s processing facilities in Northern Zambia. Jubilee’s Sable Refinery in Southern Zambia will refine concentrates produced by its Project Roan, currently under construction and set to start commissioning in November 2021, as well as its copper tailings at Kabwe and contracted third-party ore suppliers.
Right of refusal for off-take at market
The additional refining capacity will increase Jubilee’s existing capacity by 17,000 tonnes of copper per annum. Together with the Sable Refinery, Jubilee’s total potential refining capacity could increase to more than 31,000 tonnes per year, exceeding its 25,000 tonne target.
“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,” said Coetzer.
The agreement gives Mopani, one of Zambia’s leading copper producers, the first right of refusal for off-take at market rates of copper sulphide concentrates produced by the project, while all oxide associated copper will be refined by the project to copper metal.