Jubilee Metals plans $18 million sale of Zambia copper tailings

Jubilee Metals Group, a diversified metals processing and recovery company, is preparing to sell its Large Waste Project in Zambia after receiving two offers that could give the company a premium over the $18 million it paid for the copper tailings asset last year.

According to the company, the sale is part of a broader effort to reduce project risk and direct capital toward assets with stronger returns.

Jubilee sees premium from Zambia asset sale

Leon Coetzer, chief executive officer of Jubilee Metals, said the offers represent an “outright premium” to the company’s original purchase price. “The Large Waste Project is a Greenfields project and as such requires significantly higher capital at greater project execution risk,” Coetzer said.

The transaction is expected to close in the fourth quarter. Proceeds will be used to expand Jubilee’s Molefe mine, which Coetzer said offers greater returns. Jubilee has already sold about $100 million of assets as it works to simplify its portfolio and limit capital requirements for higher-risk projects.

The two bidders for the Large Waste Project have until Aug. 27 to make an initial deposit, giving them a further 90 days for due diligence. Once a preferred buyer is selected, the parties will have 10 days to complete a definitive agreement. Jubilee said the remaining consideration will be paid in installments over three years.

Molefe expansion targets higher copper output

The company plans to increase ore deliveries from the Molefe mine to its Sable refinery to 10,000 tons a month by October, from the current 3,500 to 4,500 tons. Jubilee expects the higher supply to support annual copper cathode production of about 2,000 tons at Sable.

The company has also offered Galileo Resources, a U.K.-listed developer, a farm-in agreement for a 23.75% interest in the Molefe mine in exchange for $700,000 in resource development and exploration spending.

Jubilee expands Zambia copper operations

Jubilee Metals is a diversified metals processing and recovery company listed on the London Stock Exchange’s AIM market under JLP and the Johannesburg Stock Exchange under JBL.

The company specializes in recovering copper, cobalt, platinum group metals and chrome from surface tailings and historical mine waste, turning materials that might otherwise have limited economic value into new production.

Zambia remains central to its copper strategy, with assets including the Sable refinery and Roan concentrator. As it expands its processing network, Jubilee is targeting annual copper production of 25,000 tons in the country.

The potential Large Waste Project sale would give Jubilee additional capital to pursue that strategy while reducing its exposure to a higher-cost greenfield development.