JOHANNESBURG South African platinum miner Jubilee Platinum Plc is divesting the ferroalloys assets at its operations in Middelburg, South Africa, in order to focus on its platinum "mine-to-metals strategy," the company has announced.
The Johannesburg-based company has sold its stake in power plant Power Alt Pty. Ltd. and subsidiary Jubilee Smelting and Refining Pty. Ltd., a toll smelting operation for ferroalloys, to Isle of Man-based Global Renewal Energy Ltd. (GRE) for $14 million.
Jubilee will retain the right to use the 5-megawatt AC arc furnace at the smelting operations for the processing of platinum-containing material. It also retains the right to build a second furnace at Middelburg, subject to power availability.
The existing plant has five furnaces, Jubilee chief executive officer Leon Coetzer told AMM sister publication Metal Bulletin.
"We have sold the four ferroalloys furnaces to GRE, which will in turn use these to integrate its own operations for building power installations," Coetzer said.
The furnaces can produce a variety of ferroalloys, he noted.
Jubilees business model is based on recovering platinum metal from chrome mines tailings. The miner said that its board decided to divest noncore business to free up some funds to invest in other platinum projects the company wishes to advance, with the Dilokong Chrome Mines tailings being the priority.
A version of this article was first published by AMM sister publication Metal Bulletin.