Jubilee Platinum is ironing out a deal to treat the tailings from Chemstof's chrome plant, it has been reported.

It follows the announcement by Jubilee that it was calling off a bid to buy part of the firm after being granted mining and prospecting rights for more than 60 properties near Brits.

South African publication Business Day reports that Chemstof has no plans to extract platinum, and will focus on mining chrome while Jubilee will treat the tailings.

Jubilee chief executive officer Leon Coetzer explained that there is a big difference between this case and that of Lonmin and Keysha Investments.

Where Lonmin was unhappy with the smaller firm's decision to apply for the right to explore minerals at its Marikana operations, Chemstof never had any intention of extracting platinum for its own account.

Jubilee wants platinum concentrate for the ConRoast furnace it is commissioning at Middelburg.

Commenting last week on the granting of mineral rights, Mr Coetzer said: "We are very pleased that our subsidiaries have made such progress in securing access to platinum in shallow chrome reefs.

"This negates the need for Jubilee to acquire chrome companies which would have required Jubilee to draw down on our treasury in cash or shares."

Sources:



Jubilee aims to treat Chemstof tailings (11/07/11)



Jubilee Platinum withdraws 'cautionary announcement' (08/07/11)

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