Tharisa Expands South Africa Mining With Five-Year Underground Contract

Tharisa Plc., the dual-listed chrome and platinum group metals producer, has signed a five-year contract with underground mining specialist Cementation Africa to execute development and construction works at its Tharisa Mine near Rustenburg in South Africa’s North West province.

The agreement marks a structural pivot for Tharisa as it accelerates its transition from open-pit operations to underground mining, aimed at unlocking deeper, longer-life ore bodies and extending the asset’s production horizon.

Alliance model designed for efficiency and alignment

Unlike conventional mining contracts based on fixed rates and risk transfer, the deal is structured under an alliance contracting framework. It operates on an open-book, cost-plus-fee basis, designed to align incentives between operator and contractor while improving transparency and cost control.

Tharisa said the approach is expected to improve operational efficiency, enhance access to deeper ore zones, and extend mine life across its multi-generational resource base.

Leadership bets on technical depth and safety culture

“This agreement represents an important step in unlocking the full potential of our resource base,” said Tharisa Chief Executive Officer Phoevos Pouroulis. He noted Cementation Africa’s technical expertise and safety-first operating model as key factors in the partnership.

Cementation Africa Managing Director Japie du Plessis said the company values the trust placed in its underground mining capabilities and its “zero harm” operational philosophy.

Core asset in energy transition strategy

Tharisa continues to position itself as a critical supplier of metals linked to the global energy transition, with operations spanning mining, processing, logistics, and marketing of PGMs and chrome concentrates. The group is listed on both the Johannesburg Stock Exchange and the London Stock Exchange.

Founded in 2006, the company is also advancing its Karo Platinum Project in Zimbabwe, part of a broader expansion of its PGM portfolio. In 2025, it began a phased shift toward underground mining and initiated a share repurchase programme of up to $5 million to support shareholder returns.

Cementation Africa’s expanding role

Cementation Africa, rebranded in 2025 following its acquisition by a Differential Capital-led consortium, brings more than five decades of underground mining experience.

The contractor specializes in shaft sinking and large-scale mine development, with a track record of deep-level infrastructure execution across Southern Africa.