Jubilee and Mopani Copper Mines (MCM) have formed a joint venture (JV) to develop a Cu-Co Slag Project in Mufulia, Zambia.

In the JV agreement, Jubilee is tasked to design, construct, and operate the slag project processing facility to produce cobalt intermediates. The facility is planned to process 13Mt of historical slag, estimated to contain 0.7% copper and 0.27% cobalt metal. Jubilee expects the facility to be implemented in two phases, beginning with processing easily accessible slag material and subsequently compiling a process review for the remaining complex slag resources over the next six months.

Jubilee and MCM are also considering expanding the amount of slag material being treated, by including oxide ore processed from artisanal mining operations and tailing dams. If the expansion project is feasible, both parties intend on leveraging MCM’s Nkana plant which was placed under care and maintenance more than a decade ago due to low cobalt prices. Notably, in May 2022, MCM announced its plan to reopen cobalt production in 2023 with an expected production capacity between 4-5ktpy.

Expansion plans have also presented an opportunity for Jubilee to integrate its Sable refinery and upcoming Roan concentrator facility project, both located in Kitwe with a combined production capacity of 14ktpy copper metal. The Roan project is expected to be completed by the end of October with commissioning scheduled for November 2023.

According to Jubilee’s CEO Leon Coetzer, the Slag project forms part of Zambia's waste recovery initiative, aiming to produce 3Mtpy of copper. Nevertheless, if Jubilee successfully commences the Mufulia Slag project along with its other Cu-Co tailings projects in Kitwe (Elephant and Lechwe), there could be an upturn in Zambia’s cobalt production, which had declined significantly over the last couple of years.