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Jubilee (LSE:JLP), a diversified metals producer with operations in South Africa and Zambia, has announced the commencement of operations at its Roan Upgrade project in Zambia. The new front-end section of the Roan operation, which has now started functioning, enhances the processing capacity and flexibility of the existing Roan milling and flotation sections.
Zambian Copper Strategy
Jubilee's copper strategy is anchored on its expertise in extracting value from materials often considered waste or too complex for traditional extraction methods. The targeted copper resources are categorized into three groups:
- Previously Processed Material: This includes tailings and partially processed discarded low-grade materials.
- Previously Mined Material: This encompasses historically stockpiled low-grade mined material and overburden rock, such as the material from the Waste Rock Project.
- Open-Pit Mining of Near-Surface Copper Reef: This involves operations like the Munkoyo operation and Project G.
Zambia holds vast quantities of these resources, providing Jubilee with ample opportunities to upscale its operations through targeted acquisitions. By securing these resources, Jubilee aims to expand its copper resource portfolio and enhance its processing capabilities in Zambia.
Integration of Sable and Roan Operations
Jubilee has strategically positioned the Sable and Roan operations to function independently at full capacity. The expanded Sable refinery will focus on processing material from open-pit mining operations, such as Munkoyo, while the upgraded Roan facility will predominantly process previously mined and processed materials. The goal is to achieve a combined processing capacity of approximately 25,000 tonnes per annum (tpa) of copper, with Sable contributing 16,000 tpa and Roan adding its expanded capacity.
Once Sable operates at full capacity, Roan will have the flexibility to sell excess copper concentrate in the open market. Additionally, Jubilee is considering further expanding the Roan operation to incorporate downstream refining, subject to capital allocation decisions.
Roan Upgrade Project Details
The Roan Upgrade project, initially announced on 24 June 2024, has reached a crucial phase with the successful installation and commissioning of the electrical control system (ECS). This advancement allows for the commencement of the production ramp-up.
The Jubilee team has started feeding previously mined material into Roan, where it is upgraded at the source before being transported for the production of saleable copper concentrate. Initially, this concentrate will be refined to copper cathode at Sable. However, once Sable's capacity is fully utilized for open-pit mined material from Munkoyo and Project G, the Roan concentrate will be sold on the open market.
The Roan Upgrade project provides additional processing capacity, complementing the existing sulphide copper concentrate capacity at Roan. The combined maximum design capacity is now 13,000 tpa of copper, contingent on the copper feed grades.
A Strategic Move for Sustainable Growth
Jubilee's commencement of the Roan Upgrade project signifies a strategic move to bolster its copper processing capabilities in Zambia. By integrating advanced processing facilities and securing substantial copper resources, Jubilee is poised to enhance its operational footprint and drive sustainable growth in the copper sector.
