Jubilee Metals Group PLC (LON:JLP) has executed a deal that sees the company become operator of a project to recommission and restart a chrome beneficiation plant in South Africa.
The plant is located adjacent to Jubilee’s Inyoni tailings operations and the deal is a processing agreement which is backed by a guaranteed supply of a minimum of 40,000 tonnes per month, which could rise to 80,000 tonnes per month.
READ: Jubilee to significantly enhance chrome output
The resultant PGM containing tails will be processed by Jubilee at the Inyoni PGM recovery plant.
The company pointed out that the deal significantly extends the life of the PGM resources, but also creates the potential for Jubilee to significantly expand its Inyoni Operations.
"Jubilee has, through the processing agreement, further strengthened the sustainability of its operating capacity and earnings base in South Africa,” Leon Coetzer, Jubilee chief executive said in a statement.
“Our specialist processing solution which recovers chrome and PGMs from feed materials and discard, as well as our access to unique processing solutions and intellectual property, make Jubilee an internationally recognised metals recovery company.”
He added: "We will continue to strive to outperform the industry norm on chrome efficiencies, with a team that has proven beyond expectations its capability to achieve consistent and exceptional chrome recovery efficiencies.
"Our proven capability to maximise output through well developed and tested processing solutions sets the pace for Jubilee to secure further third party chrome material supplies. "