JOHANNESBURG (miningweekly.com) – Mine-to-Metals company Jubilee has executed a cooperation agreement with Hernic Ferrochrome on the
processing of the platinum-containing surface chrome tailings currently stockpiled and generated by Hernic, in the North West, to produce chromite and platinum-group metals (PGM) concentrate.
The agreement replaced the heads of agreement, as announced on January 19, in terms of which the company was selected as the exclusive party to beneficiate the chromite and PGMs contained in the Hernic surface material.
Hernic was the world’s fourth-largest integrated ferrochrome producer, with an estimated three-million tons of platinum-containing material at surface, while it continues to add further material to the surface stock.
The project was the second of the company’s platinum projects, the first of which was to be commissioned in early next year.
The company had targeted a combined processing of platinum-containing surface material over the two projects in excess of 900 000 t/y.
The agreement appointed Jubilee as the exclusive party to beneficiate the chromite and PGMs and addressed the project execution methodology as well as
the operational and financial performance targets.
The surface material had been independently fully drilled and assayed for chrome and PGM content, resulting in an independent resource statement of 1.7-million tons, of which approximately 90% of the resource was classified in the measured category.
Hernic also had access to secondary surface stocks, which it had internally identified and could increase the surface stocks to in excess of 3-million tons through further drilling programmes.
The total project was estimated to contain PGM ounces in excess of 224 000 oz and would be the largest PGM beneficiation plant of surface chrome tailings in South Africa, capable of producing yearly revenues of R400-million at an average metal basket price of $906/oz.
Jubilee said in a statement that an extensive prefeasibility study had been concluded on the project, which included both pilot scale and full commercial scale trials to confirm the design and operational parameters.
The project would be undertaken in four phases over an eleven-month period.
“I am delighted that we have concluded this final agreement and we are honoured to be appointed as exclusive partner in what will be the largest PGM beneficiation plant of surface chrome tailings,” commented CEO Leon Coetzer.