Online Reporter
Nelson Gahadza [email protected]
Cypriot mining group Tharisa Plc says it has achieved three major milestones for its Karo Platinum Project in Zimbabwe, significantly de-risking the venture while strengthening long-term investor confidence, fiscal certainty and regulatory stability.
The Karo Platinum Project is strategically important to Zimbabwe as it is expected to boost the country’s platinum output, attract substantial foreign direct investment and create more than 1 000 permanent jobs along the mineral-rich Great Dyke.
Over the past three weeks, Tharisa has signed a Special Mining Lease Agreement (SMLA) with the Government of Zimbabwe, concluded a long-term offtake agreement with Valterra and successfully priced a US$300 million senior secured Nordic bond with a five-year tenure.
The London and Johannesburg-listed mining company said the amended SMLA reflects its strong and ongoing partnership with the Zimbabwean Government and provides the certainty required to advance the construction phase of the Karo project.
The development is a key step in Tharisa’s strategy to establish Karo as a second Tier One platinum group metals (PGM) asset while simultaneously advancing the underground transition at its flagship Tharisa Mine in South Africa.
The company is targeting first ore production from Karo in late 2027.
The Nordic bond was oversubscribed, attracting interest from more than 150 institutional investors across Europe, the United Kingdom, the Middle East, North America and Asia.
Most of the proceeds will be directed towards completing construction of the Karo Platinum Project in Mashonaland West Province along Zimbabwe’s mineral-rich Great Dyke.
The bond, issued through Arxo Finance Plc, a wholly owned subsidiary of Tharisa, was priced at 98 percent of par and carries an annual coupon rate of 11 percent.
The offering drew strong demand from more than 150 international institutional investors from Europe, the United Kingdom, the Middle East, North America and Asia.
Tharisa chief executive officer Mr Phoevos Pouroulis said the milestones achieved in recent weeks had secured the project’s long-term future while guaranteeing a market for its future production.
“The completion of these three foundational milestones, namely securing tenure, validating market demand and securing scalable funding, marks a transformative moment for Tharisa. By pricing our inaugural US$300 million Nordic bond, we have not only de-risked the Karo Platinum Project but also introduced a new, sophisticated international investor base to the Tharisa growth story,” Mr Pouroulis said.
The proceeds from the bond issue will be held in escrow pending the fulfilment of release conditions and will be used primarily to fund the development and construction of Karo.
Tharisa has also secured a long-term offtake agreement with Valterra for PGM concentrate from Karo, providing independent validation of the quality and marketability of the project’s future production.
Together, the three developments have substantially reduced the financing, regulatory and market risks associated with the project as construction activity gathers momentum.
Located on Zimbabwe’s mineral-rich Great Dyke, Karo is expected to become a significant addition to the country’s platinum mining sector.
The project hosts a sizeable resource comprising a 2,1 million-ounce open-pit reserve and a total mineral resource of 11,2 million ounces.
Phase One is expected to produce 226 000 ounces of platinum group metals annually once fully operational.
The project will further strengthen Zimbabwe’s position as one of the world’s leading platinum producers, with the country possessing the second-largest platinum reserves after South Africa.
The Great Dyke remains one of Zimbabwe’s most important geological formations, containing substantial deposits of platinum group metals and chrome.
Once completed, Karo is expected to become Tharisa’s second Tier One PGM operation and more than double the group’s PGM production capacity, reinforcing Zimbabwe’s appeal as a destination for large-scale platinum investment.
“With Karo on track for first ore in late 2027 and the Apollo complex nearing its first run-of-mine ore, Tharisa is evolving into a multi-asset, multi-jurisdictional PGM and chrome producer with a combined mine life exceeding 60 years,” Mr Pouroulis said.
The developments come as Zimbabwe accelerates efforts to attract greater mining investment and derive increased value from its mineral resources through higher production and beneficiation, particularly in the platinum sector.
Tharisa said construction at Karo is expected to advance significantly over the next 12 months, with the company maintaining its target of first ore to the mill in the fourth quarter of 2027.
Meanwhile, the underground expansion programme at Tharisa Mine remains on schedule and within budget, with the Apollo underground complex expected to deliver its first run-of-mine ore during the current financial year.
The parallel projects are expected to extend the life of the Tharisa Mine beyond 60 years while creating a diversified production base across chrome and platinum group metals.
Mr Pouroulis said the company remained committed to long-term investment despite uncertainty in the global economic environment.
“This capital enables us to enter the peak construction phase with confidence. Despite a volatile macroeconomic environment, we continue to invest through the cycle. The parallel progress of the underground project at our flagship Tharisa Mine demonstrates our commitment to long-term value creation.”
The Nordic bond also marks an important diversification of Tharisa’s funding sources, broadening its capital base beyond traditional bank debt and equity financing to include international fixed-income investors.
DNB Carnegie and HSBC acted as joint book runners for the transaction. The bond is expected to be listed on ABM Fast Entry within 60 days of the issue date and subsequently on the Euronext Oslo Stock Exchange, or another exchange selected by the issuer, within 12 months.
Mr Pouroulis said progress at Karo, Tharisa Mine and the Apollo complex was positioning the group for a major expansion in production.
“With Karo on track for first ore in late 2027 and the Apollo complex nearing its first run-of-mine ore, Tharisa is evolving into a multi-asset, multi-jurisdictional PGM and chrome producer with a combined mine life exceeding 60 years,” he said.
Tharisa has previously estimated Karo’s development cost at approximately US$545 million and disclosed that about US$241 million has already been invested in the project.
