Karo Platinum secures 25-year mining lease for Zimbabwe PGM project
Karo Platinum secures 25-year mining lease for Zimbabwe PGM project
Karo Platinum (Private) Limited, a Tharisa Group company, has signed a Special Mining Lease Agreement with the Government of Zimbabwe, securing the tenure and fiscal framework required to advance the Karo Platinum Project towards first production.
The agreement was signed at State House in Harare on August 24 and witnessed by Zimbabwean President Emmerson Mnangagwa.
Kumbirayi Katsande, Chairman of Karo Platinum, said the agreement marks an important milestone as the company progresses towards first production of platinum group metals (PGM) concentrate.
“This agreement is an important milestone not only for Karo Platinum, but for Zimbabwe’s mining sector and investment climate. The Special Mining Lease supports the long-term certainty required to progress a project of this national significance, while demonstrating Zimbabwe’s commitment to attracting responsible, long-term investment into its mineral resource base,” he said.
Katsande thanked President Mnangagwa, the Ministry of Mines and Mining Development, the Ministry of Finance, Economic Development and Investment Promotion, and other government stakeholders for their role in finalising the agreement.
“We look forward to continuing this partnership as we advance Karo Platinum for the benefit of our host communities, the people of Zimbabwe and all stakeholders,” he said.
Karo Platinum is 85% owned by Karo Mining Holdings (KMH), with the remaining 15% owned by the Government of Zimbabwe through Generation Minerals on an unencumbered free-carry basis.
Granted under Zimbabwe’s Mines and Minerals Act (Chapter 21:05), the Special Mining Lease provides Karo Platinum with long-term tenure over the project’s 23 903-hectare mining area, alongside the fiscal and operational framework applicable to high-value, large-scale mining projects of national significance.
The lease has been granted for an initial term of 25 years.
Phoevos Pouroulis, CEO of Tharisa, described the agreement as a defining milestone for Karo Platinum and Tharisa’s growth strategy.
“We are grateful to the Ministry of Mines and Mining Development, the Ministry of Finance, Economic Development and Investment Promotion, and all stakeholders for the constructive engagement that has brought us to this point,” said Pouroulis.
“Phase 1 is designed to employ over 1 000 people while delivering 226 koz of PGMs per annum, making Karo Platinum central to Tharisa’s 2030 strategy. We look forward to advancing the project in partnership with our host communities, stakeholders and the people of Zimbabwe.”
Karo Platinum is one of the largest undeveloped PGM assets on Zimbabwe’s Great Dyke. The project has an open-pit Mineral Reserve of 2.1 million ounces on a 4E basis and a Mineral Resource of 11.2 million ounces on the same basis.
Potential underground mining could further extend the project’s mine life to more than 50 years.
