Jubilee Metals Group PLC (LON:JLP/Altx: JBL), a diversified metals processing business with operations in Africa, has announced the award of the large Mufulira Slag Project through a Joint Venture collaboration with Mopani Copper Mines.
This binding and exclusive award of The Slag Project aims to process approximately 13 million tonnes of historical slag, estimated to contain 0.7% copper and 0.27% cobalt in addition to the current slag arisings. Under the targeted JV, Jubilee is exclusively appointed to design, implement and operate the new processing facility with the first right to fund the implementation of the project in collaboration with MCM.
The JV reflects Jubilee’s commitment to securing high-value waste resources containing copper and cobalt – metals that are critical to the green transition – and underscores the Company’s proven track record of the responsible extraction and utilisation of high-value waste resources.
The Slag Project of 13 million tonnes of historical slag, represents an exciting opportunity for Jubilee to extract and process these valuable resources, estimated to contain 89kt of copper and 44kt of cobalt, in addition to current arising slag from the on-going MCM facility in Mufulira. The copper grades within the slag are double those of standard tailings, providing an exceptional opportunity to extract maximum value from this significant resource.
Key terms of the Joint Venture
In outlining the proposed scope both Jubilee Metals Group and MCM, in accordance with the award conditions, will establish a Special Purpose Vehicle (“SPV”) dedicated to facilitating the JV for processing the slag at the MCM facility in Mufulira. Additionally, there is potential for the SPV’s mandate to expand, encompassing the treatment of material from tailing dumps and oxide ore sourced from small scale miners. This strategy aims to optimise the utilisation of MCM plants currently under care and maintenance located in Kitwe.
Over the past two years, Jubilee has researched the slag to formulate a conceptual flowsheet for metal extraction.
The salient terms of the JV include:
– The exclusive right of the JV to access and refine the Mufulira Slag;
– Jubilee taking the lead in developing the processing solution, its subsequent implementation, and managing the operations;
– Jubilee will hold the first right to securing finance the project’s capital for implementation of the Slag Project; and
– The formation of a supervisory board for the JV, comprising representatives from both Jubilee and MCM.
The contractual commitment to this project takes effect immediately and will be superseded by the finalisation of the JV agreements between Jubilee and MCM.
STATEMENT FROM LEON COETZER, CEO:
“This award by Mopani Copper Mines appointing Jubilee to execute the Slag Project on their behalf is a great honour and recognises Jubilee’s leading role in the development of metal extraction solutions from waste and overlooked materials.
“This Slag Project not only offers further scale to our current project portfolio, but also high value metal content material. The Project holds the potential to accelerate investment into the Mufulira area which will benefit not only the JV partners but all stakeholders.
“The professional and transparent manner in which the award process has been managed by Mopani speaks to their exceptional standing in the industry and I welcome the opportunity to work closely with our JV partners. The Slag Project is perfectly located to integrate into Jubilee’s Northern Copper Strategy adding a significant copper and cobalt resource at enhanced grades to the targeted portfolio.
“The proposed Joint Venture structure through which the Slag Project will be implemented, offers a great example of the formation of a true partnership between a prestigious copper mining company such as Mopani Copper Mines and Jubilee as the solution provider to turn their slag waste into a valuable asset for the region. Mopani Copper Mines is currently reviewing the entry of a new strategic investor and I look forward to engaging with them during the implementation of the Slag Project.
“The Slag Project forms part of a greater waste recovery initiative in Zambia that speaks to the President of Zambia’s stated mission of achieving 3 million tonnes of copper output per annum from Zambia.
“Our immediate next step is to form an integrated team with Mopani to unpack the complexity within the slag material through our development centre. I expect to implement the Slag Project over two phases as we target to prioritise the quick-to-process initial slag material, while completing the process review for the more complex slags over the coming 6-month period.”
