Jubilee Metals Group PLC (AIM:JLP, JSE:JBL, OTC:JUBPF) has been awarded a "large" Mufulira slag processing contract through a joint venture collaboration with Mopani Copper Mines (MCM).
Through the agreement, Jubilee will 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.
Jubilee will design, implement and operate the new processing facility with the first right to fund the implementation of the project in collaboration with MCM in an exclusive arrangement.
AIM-listed Jubilee estimates the slag heaps contain 89,000 tonnes (t) of copper and 44,000t of cobalt, in addition to the current arising slag from the ongoing MCM facility in Mufulira.
The copper grades within the slag are also double those of standard tailings, it said.
The joint venture will see Jubilee and MCM establish a Special Purpose Vehicle (SPV) dedicated to facilitating the JV for processing the slag at the MCM facility in Mufulira.
Leon Coetzer, Jubilee’s chief executive, said: "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.
“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.”