REG - Jubilee Metals Group - Private Power Purchase Agreement in Zambia

Jubilee MetalsAnnouncement

27/08/2024 07:00

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RNS Number : 6899B  Jubilee Metals Group PLC  27 August 2024

Jubilee Metals Group PLC

Registration number (4459850)

AIM share code: JLP

Altx share code: JBL

ISIN: GB0031852162

("Jubilee" or "the Company" or "the Group")

 

 

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Jubilee secures Private Power Purchase Agreement in Zambia

 

Jubilee, a diversified metals producer with operations in Zambia and South
Africa, is pleased to announce the signing of a three-year renewable power
purchase agreement with Lunsemfwa Hydro Power Company (LHPC), an independent
hydro and solar power producer in Zambia. The power purchase agreement ensures
that the total power supply needs of both Roan and Sable will be continuously
met at competitive rates to the prevailing power tariffs, commencing on 1
September 2024.

 

In addition, the agreement allows Jubilee the option to secure a further 10MW
of solar generated power discounted by more than 30% below the initial power
purchase agreement power rates. The additional power secures Jubilee's future
power demands to meet its expanding operational footprint.

 

Leon Coetzer, CEO of Jubilee commented:

 

"The successful implementation of the private power purchase agreement is a
critical step towards securing a reliable and continuous power supply for our
operations and addresses the current shortage of power experienced. This comes
at a critical time as we step up the production at our Roan and Sable
operations and look to further expand our operational footprint. Our Roan
operation has been impacted by power shortages, which is comprehensively
addressed by this agreement.

 

The additional power allocation of 10MW which holds the potential to be
further scaled, ensures that our immediate power demands for our operational
expansion targeting 25 000 tonnes of annual copper processing capacity will be
met. Security of power supply is a critical factor in the successful roll-out
of our Zambian copper strategy."

 

Further Background to the Power Purchase Agreement

 

LHPC is an established independent power producer in Zambia and owns and
operates two hydropower plants in the central province. LHPC is a member of
the Southern Africa Power Pool and an active power trader in the regional
market. LHPC is building a 20MW solar plant and plans to use its portfolio of
renewable power sources to meet Jubilee Zambia's power requirements. The
agreement highlights Jubilee's dedication to sustainable energy practices. The
power will be supplied from an integrated solar power and hydro-storage
facility which is expected to be brought into operation over the coming 12
months.

 

On 10 June 2024, the government of the Republic of Zambia held a special
cabinet meeting chaired by the President and approved the Open Access regime
allowing private players to access the electricity transmission and
distribution lines in the country to give consumers alternative sources of
electricity to encourage the development of power generation in the country.
LHPC and Jubilee are excited to be among the pioneers in actualising this
government policy.

 

 

*ENDS*

27 August 2024

For further information visit www.jubileemetalsgroup.com
(http://www.jubileemetalsgroup.com) , follow Jubilee on Twitter
(@Jubilee_Metals), visit www.lunsemfwahydro.com.zm  or contact below:

Jubilee Metals Group PLC

Leon Coetzer (CEO) / Neal Reynolds (CFO)

Tel: +27 (0) 11 465 1913

Nominated Adviser - SPARK Advisory Partners Limited

Andrew Emmott/James Keeshan

Tel: +44 (0) 20 3368 3555

PR & IR Adviser - Tavistock

Jos Simson/ Gareth Tredway

Tel: +44 (0) 207 920 3150

Joint Broker - RBC Capital Markets

Farid Dadashev/Jamil Miah

Tel +44 (0) 20 7653 4000

Joint Broker - Zeus Capital

Harry Ansell/Katy Mitchell

Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618

JSE Sponsor - Questco Corporate Advisory Proprietary Limited

Alison McLaren

Tel: +27 (0)11 011 9207

 

About Jubilee

 

Jubilee is a low-cost, diversified producer, specialising in the recovery and
processing of metals from previously overlooked resources, such as unprocessed
historical waste rock, run-of-mine materials and tailings in Zambia and South
Africa. The Company's low-capex, modular processing facilities are deployed
close to these various types of material, producing high-grade concentrates
for sale or further refining to finished metal at the Company's downstream
facilities. Production currently consists of copper, chrome, and platinum
group metals (PGMs). The modular processing facilities offer a platform for
growth and the rapid expansion of Jubilee's operational footprint in Zambia
and South Africa. Jubilee's success is derived from operational and technical
excellence, an experienced management team and a pioneering Technical
Development Centre.

 

 

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