Tharisa has secured a major offtake agreement for its Karo Platinum project in Zimbabwe, strengthening the development case for one of the country’s largest undeveloped platinum group metals (PGMs) projects.

The London- and Johannesburg-listed critical minerals company said its Karo Platinum subsidiary signed a binding purchase of a concentrate term sheet with a subsidiary of Valterra Platinum.

The agreement covers the purchase of PGM and base metal concentrate produced at the Karo project on Zimbabwe’s Great Dyke.

The agreement gives Karo Platinum an initial five-year sales arrangement on customary terms used in the PGM industry.

For Tharisa, the deal provides greater certainty over future concentrate sales as it works toward bringing the Zimbabwe mining project into production.

Karo Mining Holdings owns 85% of Karo Platinum, while the government of Zimbabwe holds the remaining 15% through Generation Minerals Private on an unencumbered free-carried basis. Tharisa owns 78.81% of Karo Mining Holdings.

Karo moves closer to production

Karo Platinum is one of the largest undeveloped PGM projects on the Great Dyke. It has an open-pit mineral reserve of 2.1 million ounces on a four-element basis, covering platinum, palladium, rhodium and gold, along with a mineral resource of 11.2 million ounces.

Tharisa said potential underground mining could extend the project’s mine life beyond 50 years.

The company expects the first phase of Karo to produce about 226,000 ounces of PGMs a year.

Valterra expands its processing business

Tharisa CEO Phoevos Pouroulis said the agreement with Valterra was an important step for Karo because it provides a clear route to market as the project advances. He said Valterra was an ideal partner for the next stage of development.

Valterra CEO Craig Miller said the deal reflects the company’s confidence in the PGM market and Karo’s mineral potential.

He added that the agreement will also support Valterra’s third-party processing portfolio.

Tharisa is a London- and Johannesburg-listed mining and metals company focused on PGMs and chrome.

It operates the Tharisa Mine in South Africa and is developing Karo Platinum in Zimbabwe as it expands its PGM business in Southern Africa.

The Karo project is 85% owned by Karo Mining Holdings, while the Zimbabwe government holds 15% through Generation Minerals. Tharisa owns 78.81% of Karo Mining Holdings.

With the mining lease and concentrate buyer now in place, Tharisa has cleared two important steps in its plan to bring Karo into production.

The focus now shifts to advancing the project toward construction and first output.