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Nelson Gahadza
Senior Business Reporter
South African firm Tharisa Capital has extended the timeline for the commissioning of its Karo Platinum mine project in Zimbabwe to June 2025 in response to the deterioration in global platinum group metals (PGM) prices.
The group, which intends to invest nearly US$400 million in the first phase of the project, initially targeted bringing the first ore to the mill by the second half of 2024 and significant progress had been made in line with the target. However, Tharisa has indicated that pilot mining continues uninterrupted.
Tharisa chief executive Phoevos Pouroulis said in a fourth quarter and full-year production update that the project’s revised timeline was “aligned to funding availability and the project could be accelerated if the global metal prices improve.
“Given the current PGM basket price weakness and uncertain global economic outlook, we have taken the measured decision to extend the Karo Platinum timeline out to commissioning by June 2025, with the opportunity to accelerate the timeline as markets become more favorable.
“The Karo Platinum project has progressed well, and the revised timeline is aligned to funding availability and provides flexibility to navigate volatile market conditions,” he said.
The Karo Platinum project on Zimbabwe’s mineral-rich Great Dyke belt is a US$4,2 billion PGMs mining project. When complete, the project will take Tharisa’s PGM production to about 400 000 ounces annually.
According to Mr Pouroulis, PGM prices had fallen on the international market further than anticipated this year, while the market for precious metals remained uncertain and volatile.
He said the average PGM basket price received in the fourth quarter was 21,5 percent lower at US$1,331/oz, and this had “accelerated” the annual price retreat of 26,1 percent, with average prices received at US$1,893/oz compared to an average price of US$2,564/oz last year.
In an update on progress, Tharisa said the project team has divided major work streams into smaller commitments to ensure continued development aligned with funding availability while manufacturing key long-lead items nearing completion.
“Pilot mining is continuing as planned to optimize mining design, and additional current resource to reserve conversion is underway,” said Mr Pouroulis.
Already, Karo has invested more than US$70 million in the first phase of the project. The project is one of several multi-million dollar projects that are at different stages of implementation in Zimbabwe.
The Karo Platinum project is located in the Great Dyke, Mashonaland West District, approximately 80 kilometers southwest of Harare and 35 kilometers southeast of Chegutu.
The Great Dyke is a PGM-bearing geological feature that runs from north to south in Zimbabwe. It is approximately 550 kilometres in length, and the country is considered to hold the second-largest platinum deposits after South Africa.
Meanwhile, according to the update, Tharisa also announced modest guidance for PGM production for its 2024 financial year, which is at 145 000 to 155 000 oz, significantly down on guidance for this year, which was initially put at 175 000 to 185 000 oz.
In April, Tharisa downgraded that guidance by 10 percent following heavy rains, which compounded a pre-existing waste removal difficulty related to the high levels of oxidized ore in the Tharisa open pit.
“Our growth strategy remains firmly intact, with continuous optimization at the Tharisa Mine, investment in downstream beneficiation, and our commitment to the development of the multi-generational Tier 1 Karo Platinum Project,” said Mr Pouroulis.
He said while current markets are volatile and unpredictable, the company believes in the medium-term outlook for PGMs underpinned by a supply-side constrained economy, supported by a robust chrome market driven by stable demand.
Mr Pouroulis said the company’s margins remain strong due to mechanized low-cost operations, a continued disciplined capital allocation strategy, ensuring investment in existing businesses, and providing sustainable growth and return to shareholders.
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