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A diversified metals processor with operations in South Africa and Zambia,Jubilee, has entered into a strategic joint partnership with a South African PGM producer to unlock value from surplus platinum group metals (PGM) feed material generated by its booming chrome operations.
The agreement follows record chrome production in the six months to December 2024, which surged 35.7% to 974,659 tonnes. This sharp growth has resulted in an oversupply of PGM-bearing material, a by-product of Jubilee’s chrome concentrate output. Rather than expand its own PGM processing capacity, Jubilee opted to partner with an established operator, enabling immediate processing of the surplus feedstock without additional capital outlay.
Initial deliveries of 18,000 tonnes per month are set to begin, with scope to scale up to 30,000 tonnes per month depending on plant performance. At peak levels, this could add an estimated 11,500 ounces of PGMs per year to Jubilee’s output, an increase of up to 32% based on current guidance.
The earnings from the collaboration will be shared equally between the parties. Jubilee will also take charge of operational oversight and technical optimisation of the facility, strengthening its role as a key value-adding partner in the process.
Jubilee’s Chief Executive Officer Leon Coetzer welcomed the deal, noting it aligns with Jubilee’s capital-light strategy, “The successful commissioning of our new chrome modules at Thutse has taken production to record levels. This partnership allows us to rapidly monetise the resulting PGM surplus, leveraging external capacity and reinforcing our position without the need for additional investment.”
The initial term of the agreement is 12 months, with potential for long-term extension. As chrome volumes continue to rise, the collaboration sets Jubilee up for scalable PGM growth and sustained profitability.
