Jubilee Metals Faces Copper Production Setback in Zambia Due to Power Constraints

Jubilee Metals Group, a diversified metals producer listed on Aim and AltX, reported a shortfall in copper production at its Roan operation in Zambia due to power constraints.

In its operational update for the six months ending December 31, which marks the first half of its 2025 financial year, the company revealed that copper production in Zambia totaled 1,454 tonnes, down from 1,683 tonnes during the same period in the 2024 financial year. The figure also fell short of the revised target of 1,800 tonnes.

Despite this, Jubilee reported a significant increase in run-of-mine (RoM) and in-process stock, which now stands at around 1.21 million tonnes, containing an estimated 8,466 tonnes of copper units earmarked for future processing.

To address the power challenges at Roan, Jubilee signed an additional power supply agreement with a new, broad-based provider.

This agreement ensures access to a distributed power supply from multiple sources, reducing dependency on a single supply source and mitigating local power network limitations.

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

The Sable refinery has remained operational due to its proximity to a stable power provider, while Roan achieved ramp-up throughput targets of 45,000 tonnes per month before power shutdowns occurred due to unstable supply.

Initially commissioned with low-grade waste materials, the Roan plant transitioned to feed materials containing around 1.5% copper.

Roan was placed under care and maintenance to avoid equipment damage, with plans for resumption once the new power supply agreement is in place.

Jubilee CEO Leon Coetzer commented, “Over the past quarter, we have faced significant challenges in our Zambian operations caused by factors beyond our control.

However, we have addressed the power supply issue by entering into an additional agreement that sources power from a broader generation network.

This should effectively resolve the current limitations and allow us to return to our previous processing rates once the new power supply is operational.”

In contrast, copper production at the Munkoyo mine, near the Sable refinery, was unaffected by the power constraints. Munkoyo achieved its mining targets, producing over 70,000 tonnes per month of RoM.

High-grade RoM, containing over 2.5% copper, continued to be directly refined at Sable at a rate of 8,000 tonnes per month. Additionally, pilot-scale leach trials at Munkoyo showed strong results, with final designs and capital estimates expected by the end of Q1 2025.

In South Africa, Jubilee achieved record production in its chrome concentrate operations, increasing output by 35.7% to 974,659 tonnes in the second half of 2024, compared to 718,189 tonnes in the first half.

The company remains on track to exceed its full-year guidance of 1.65 million tonnes, thanks to 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 tonnes for Q2 of the 2025 financial year.

Platinum group metals (PGM) production for the first half of the 2025 financial year totaled 18,435 ounces, down from 20,244 ounces during the same period in 2024.

However, Jubilee is still on track to meet its full-year guidance of 36,000 ounces. The company has responded to the decline in chrome market prices by improving operational efficiencies and throughput in both its chrome and PGM operations.

Coetzer added, “In South Africa, our team continues to deliver exceptional performance. We are well on track to meet and exceed our chrome production guidance for the 2025 financial year. Our chrome and PGM business has proactively adapted to market challenges, ensuring we remain competitive.”

Jubilee confirmed that its copper production guidance remains under review until a consistent power supply is established and Roan is fully operational again. However, the company expects its chrome and PGM production targets to be met or exceeded.