Jubilee and Sylvania strengthen partnership

Production and Markets

Publishing Date: 04 Feb 2010 12:36pm GMT
Author: Mining Journal

Jubilee Platinum plc, the AIM-quoted South African mining company, has entered into an agreement with Sylvania Resources Ltd to form two new joint venture companies. One will focus on smelting and refining, and the other on tailings reprocessing.

The smelting company will utilise Jubilee's ConRoast technology, with ownership being split 70% Jubilee and 30% Sylvania. The tailings company, on a 50:50 ownership basis, will undertake the processing of future platinum tailings opportunities.

It is expected that the two new companies will allow for the processing and treatment of low grade and high-chrome concentrate resources on the Bushveld, which have previously been deemed uneconomic.

In the meantime, Sylvania commits to make available to the smelting company all uncommitted concentrate from its existing tailings operations. The company will also commit its projects on the northern limb of the Bushveld projects. For its part, the smelting company will install up to three 10MW ConRoast furnaces, with a centralised refining facility.

The agreements is expected to be enacted within three months.