The technical and operational teams of Aim- and AltX-listed metals processing company Jubilee Metals Group are focused on bringing the Sable Zinc Kabwe refinery project, in Zambia, on line against an accelerated timeline.

This will advance the processing of the Kabwe surface material, significantly reducing production lead times.

Having finalised the detail process design, Jubilee’s engineers will now start the process upgrade to integrate the Kabwe tailings project, according to Jubiliee’s six monthly operations update published last month.

The project aims to integrate the process over two phases. The first phase targets the production of vanadium pentoxide and an intermediate saleable zinc concentrate, while the second targets production of refined zinc and a lead concentrate.

The Kabwe tailings project has the potential to significantly enhance the company’s earnings on the back of three revenue-producing metals, notes Jubilee.

The company has access to 6.4-million tonnes (3.2-million Joint Ore Reserves Committee-compliant) surface material containing an estimated 356 843 t of zinc, 351 386 t of lead and 1.26% equivalent vanadium pentoxide.

During the second half of the year, Jubilee will also focus on bringing a copper refining line into operation to capitalise on the regional demand for such refining capacity.

“This means we will soon add zinc, vanadium, lead and copper to our commodity basket, which is an important element of our on-going development strategy to diversify our earnings through additional jurisdictions and increased metal exposure,” states Jubilee CEO Leon Coetzer.

He attributes Jubilee’s marked increase in combined revenue for the six months ended June 30, 2019, of 75%, compared with the second half of 2018, to the company’s sustained focus on increasing and diversifying its earnings base and maintaining strong margins.

Sable Zinc refinery enhances the company’s future operational earnings capability and expands its operations to other geographical areas and metals, says Jubilee.

Jubilee’s acquisition of the Sable Zinc Kabwe refinery became effective in July this year, with all contractual conditions precedent met and final competition commission approval received for the transaction from the Zambian Competition and Consumer Protection Commission.

The final administrative process for the Sable Zinc Kabwe refinery handover and share transfer with multinational commodity trading and mining company Glencore is near completion with only the final share transfer to be completed and registered.

Jubilee holds 91.5% interest in the Kabwe joint venture (JV) with Aim-listed BMR Group, with an option to increase to 100% ownership. The company entered into the JV with BMR in 2017.

Jubilee has been appointed as the sole operator of the Kabwe project giving it full control of the project execution methodology.

Kabwe History

Kabwe, formerly known as Broken Hill, is the principal urban settlement, trading and retailing centre of Zambia’s Central Province with a population of about 180 000. It lies at the strategic intersection of the Great North Road linking the Copperbelt in the north with Lusaka in the south, according to BMR’s website.

The 3 km² Kabwe mine site was discovered in 1902 and started operations in 1904, reaching full-scale production in 1906. Officially closing in 1994, owing to its operations becoming uneconomic, the site was placed under care and maintenance by the national mining company The Zambian Consolidated Copper Mines.

“For 88 years of continuous operation . . .  Kabwe was regarded as one of the famous mines in Africa and held a key position of national economic importance,” says BMR.

The complex included opencast and underground workings, mineral processing, smelting and refining facilities. By 1994, the lead-zinc massive sulphide ore was exhausted, but it was estimated that there was still between 1.1-million tons and 1.6-million tons of lead/zinc-rich silicate ore on site.

“Importantly, the above-ground dumps of mineral-rich tailings, slag and waste left on site during the mining years are still in place,” highlights BMR.