South Africa’s Tharisa advances $391 million to complete phase 1 of Karo project in Zimbabwe

Tharisa Plc, one of the world’s leading chrome producers based in South Africa, is closing in on securing full project financing for its $391 million Karo Platinum development in Zimbabwe, marking a major step toward bringing one of the country’s largest new platinum operations into production.

The company said first ore processing is targeted for the second half of 2027, as the project transitions into an active development phase following the successful mobilisation of its mining contractor. This comes amid its intention to spend $547 million to transition its depleting open-pit PGM and chrome co-producing mine in Bushveld complex, South Africa, to underground mining within a decade.

Driving Zimbabwe’s platinum expansion

The Karo Platinum project, located along the mineral-rich Great Dyke, has commenced open-pit surface clearing, with infrastructure development gaining momentum. Key workstreams include securing power, water, and critical long-lead equipment required for construction and future operations.

Tharisa noted that the funding package is nearing completion but remains subject to final fiscal stability agreements with the Zimbabwean government, which are close to conclusion. The agreements are expected to provide long-term policy certainty for the large-scale investment.

The company has already committed more than $131.3 million in capital since June 2022, alongside an additional $17.6 million spent on exploration and pre-development activities.

Scaling production in a strategic mining hub

Once operational, Karo Platinum is expected to produce up to 226,000 ounces of platinum group metals annually, positioning it as a significant contributor to Zimbabwe’s mining output.

The project is designed as a long-life asset, beginning with a 10-year open-pit operation before transitioning into a 30-year underground mining phase. Its location within a designated Special Economic Zone further enhances its strategic importance.

Zimbabwe’s platinum sector is currently dominated by Zimplats Holdings, Unki Platinum Mine, and Mimosa Mining Company, with new entrants such as Bravura Holdings also ramping up investments.

Economic impact and sector growth

Zimbabwe holds the world’s second-largest platinum reserves, alongside significant high-grade chromium deposits, reinforcing mining as a cornerstone of the economy. The sector contributes about 12% to GDP and accounts for roughly 80% of export earnings.

Mines Minister Polite Kambamura has emphasized that sustained mining investments are central to achieving the country’s Vision 2030 goal of becoming an upper-middle-income economy through value addition and beneficiation.

Resilience amid global challenges

Chief Executive Phoevos Pouroulis said the company remains focused on disciplined execution despite weather-related disruptions and geopolitical uncertainties.

The progress at Karo underscores rising investor confidence in Zimbabwe’s vast mineral resources, as Tharisa advances a project set to reshape the country’s platinum production landscape.