Africazine:
Jubilee Platinum is pivoting towards copper production, aiming for 25,000 tonnes annually. This shift follows the sale of its chrome and platinum group metals assets.
Finance director Jonathan Morley-Kirk emphasized that the decision to exit chrome was driven by market dynamics rather than a negative view of South Africa. The company sold its chrome and PGM assets for m and is now focusing on Zambia’s copper market, which shows promising demand and stability.
Jubilee Platinum’s Strategic Shift to Copper
Jubilee Platinum, under the leadership of Matthews Phosa, has decided to concentrate on copper production, forecasting an output of 25,000 tonnes per year. This decision comes after the company sold its local chrome and platinum group metals assets for m to One Chrome. Morley-Kirk noted that the global market for copper is more stable and liquid compared to chrome, which is subject to volatile pricing influenced by Chinese buyers.
The company’s previous structure as a chrome processor limited its ability to absorb rising costs, particularly in electricity. With the increasing demand for copper, especially in construction, Jubilee aims to capitalize on this trend by expanding its operations in Zambia, where it operates the Sable Refinery and Molefe Mine.
Market Dynamics Favoring Copper Over Chrome
Morley-Kirk explained that the demand for copper is outpacing the supply of new mines, which is driving prices upward. In contrast, the chrome market has become mature and dominated by Chinese buyers, making it difficult for producers to manage costs effectively. The volatility in chrome pricing has prompted Jubilee to seek more stable opportunities in copper.
Despite the challenges faced in the chrome market, Jubilee’s chrome processing business had previously shown strong growth, increasing production from 180,000 tonnes to 2 million tonnes annually over four years. The company is now focused on enhancing its copper mining capabilities in Zambia, where it has significant land holdings and ongoing operations.
Upcoming Developments in Copper Production
- Drilling results at Molefe Mine are scheduled for March 24, 2026.
- A third-party report on the mine’s viability is in progress.
- Plans to expand the Molefe Mine are underway.
Jubilee Platinum’s shift to copper production signals a strategic move towards a more stable and lucrative market.
