Jubilee JLP is considering its options after the potential buyer...

Jubilee JLP is considering its options after the potential buyer of its smelting and power arms failed to make the second payment.

In May, Jubilee agreed to sell a 65% stake in Jubilee Smelting and a 40% holding in PowerAlt, the generating business, for US$9.1mln to Global Renewal Energy (GRE).

To date, Jubilee has received US$0.76mln in non-refundable deposits from GRE, but a second payment of US$8.9mln, which was due at the end of July, has not been forthcoming.

Jubilee is now in discussions with both its advisors and GRE, which has reiterated its commitment to the transaction.

Leon Coetzer, Jubilee Platinum’s chief executive, said: "We are disappointed that GRE has not honoured the terms of the transaction.

This sale of non-core assets by Jubilee is not fundamentally linked to the Jubilee business strategy and instead is a transaction that offered Jubilee the opportunity to liquidate its shareholding in businesses that do not form part of Jubilee's platinum mine-to-metals strategy.

"We will review the appropriate action to take regarding the transaction after further discussions with GRE and our advisors taking into account.”

Jubilee added that the smelting business had picked up another contract recently while PowerAlt is continuing to sell electricity into the South African grid.

Revenue for the two companies in the six months to June 2013 increased by 48% to R34.6 mln (£2.3 mln) from R23.6mln (£1.8mln) in the preceding six months.

Earlier this week, Jubilee agreed revised terms for the acquisition of Platinum Australia alongside a loan to re-start its operations.