Aim- and AltX-listed diversified metals producer Jubilee Metals Group failed to meet its copper production target at its Roan operation, in Zambia, owing to power constraints, the company announced in an operational and project update on January 13 for the six months ended December 31 – the first half of its 2025 financial year.

Copper production in Zambia totalled 1 454 t, a decline from the 1 683 t produced in the first half of the 2024 financial year, and falling short of the revised target of 1 800 t.

However, the company reported a significant increase in run-of-mine (RoM) and in-process stock, reaching about 1.21-million tonnes containing an estimated 8 466 t of copper units for future processing.

To address the power constraints at Roan, Jubilee executed an additional power supply agreement with a new broad-based provider. This agreement secures access to a distributed power base from multiple sources to avoid dependency on a single supply source and local power network limitations.

The new power supply, capable of meeting all power demands at Roan and Sable, is expected to begin within seven business days, pending regulatory approval, at a cost similar to the existing agreement.

The Sable refinery remained operational owing to its proximity to the power producer, while Roan achieved ramp-up throughput targets of 45 000 t a month before shutdowns caused by unstable power supply.

Initially commissioned using low-grade waste materials, the plant was later transitioned to feed materials containing about 1.5% copper. Roan was placed under care and maintenance to avoid equipment damage, with operations set to resume upon the start of the new power supply agreement.

"Over the past quarter, we have experienced significant challenges in our Zambian operations brought on by extraordinary circumstances outside of our direct control. We have addressed the power supply challenge by entering into an additional power supply agreement that sources power across a broader generation network to avoid localised exposure to network instabilities.

“This contract should successfully address the current power supply limitations that affected Roan’s ability to operate. We expect to return to the processing rate previously achieved at Roan once power delivery under the new power supply agreement commences,” Jubilee CEO Leon Coetzer said.

Copper production at the Munkoyo copper mine, near the Sable refinery, was unaffected by the power constraints. Munkoyo achieved mining targets, producing over 70 000 t a month of RoM.

High-grade RoM, exceeding 2.5% total copper, continued to be directly refined at Sable at a rate of 8 000 t a month.

Pilot-scale leach trials targeting all RoM produced at Munkoyo demonstrated strong results, with final designs and capital estimations expected by the end of the first calendar quarter of 2025. Copper production rates are expected to return to target levels with the additional power agreements and Roan’s restart.

“The Munkoyo process trials have delivered very encouraging results, confirming our ability to process all of the RoM mined at Munkoyo on site at a much lower operating cost and a reduced operating footprint than originally envisaged.

“While unexpected setbacks mainly outside of our control do provide hurdles, we have successfully navigated these challenges and remain confident in delivering full value from our Zambian operations,” Coetzer said.

In South Africa, Jubilee’s chrome concentrate production reached record highs, increasing by 35.7% to 974 659 t in the second half of 2024 from 718 189 t in the first half of 2024. The company is on track to meet and exceed its full-year guidance of 1.65-million tonnes, supported by the successful commissioning of two new chrome processing units.

The Thutse modules achieved design throughput in December, contributing to a record quarterly production of 519 310 t for the second quarter of the 2025 financial year.

Platinum group metals (PGM) production for the first half of the 2025 financial year reached 18 435 oz, compared with 20 244 oz in the same period of the 2024 financial year. Jubilee remains on track to meet its full-year guidance of 36 000 oz.

The company highlighted that its chrome and PGM operations have adapted to the sharp decline in chrome market prices by improving operational efficiencies and throughput.

“In South Africa, the team continues to deliver an exceptional performance. We are well on track to achieve and exceed our chrome guidance of 1.65-million tonnes of chrome concentrate for the 2025 financial year. Our chrome and PGM business has proactively responded to market challenges, ensuring we remain competitive,” Coetzer noted.

Jubilee stated that its copper production guidance remained under review until a consistent power supply was established and Roan was brought back into operation following the new power agreement.

Chrome and PGM production targets are expected to be met or exceeded.