Karo edges closer to securing US$$225m for platinum project
LIVINGSTONE MARUFU
Karo Resources is nearing a breakthrough in securing a US$225m funding to complete the construction of its flagship platinum group metals (PGMs) project in Zimbabwe.
The funding will supplement capital already sourced from various avenues to drive the development forward.
The Karo Platinum Project, located on the Great Dyke in Mhondoro, Mashonaland West Province, is an open-pit mining venture with an estimated Phase 1 cost of US$391m. To date, over US$100m has been invested in mine infrastructure and pilot mining activities.
South African-based Tharisa Capital, the parent company of Karo, has been instrumental in funding the project, having invested US$107m since June 2024. The company committed to financing the first US$135m of the project budget through equity and equity-linked instruments, kickstarting construction and exploration efforts.
Tharisa’s investment has already enabled significant progress, with US$17.6m allocated for exploration and predevelopment.
Group CEO Phoevos Pouroulis highlighted these achievements.
“By the reporting date, US$107m had been received from Tharisa. Additionally, we are at an advanced stage of securing US$225m in debt funding to complete the project, along with US$31.2m from an equity partner,” said Pouroulis.
He noted that a US$65m equity line from Karo Mining Holdings in the prior year had been fully utilized, with an additional US$70m equity line now available to fund working capital requirements.
Despite this momentum, the development timeline has been adjusted due to challenging market conditions in the PGM sector.
The first ore mill is now scheduled for commissioning in the second half of 2026. The project’s workstreams have been divided into smaller commitments to align development with available funding.
“The current low PGM pricing environment has constrained project debt capacity, prompting the group to explore alternative funding solutions. Discussions around senior debt and mezzanine facilities are well advanced,” said Pouroulis.
Platinum is Zimbabwe’s second-largest export earner, contributing significantly to the economy alongside gold. Together, these precious metals account for over 75% of the country’s annual export revenue.
Major players in the sector include Impala Platinum’s Zimbabwean subsidiary, Mimosa (co-owned by Sibanye Stillwater), and Anglo American’s Unki Mine.
Tharisa currently holds a 76.66% stake in Karo Mining but is set to increase its shareholding to 80% with further equity investments. Construction of the plant began on December 7, 2022, with progress continuing steadily. The development includes value engineering, mining, and process optimization running concurrently.
Pouroulis emphasized that the directors remain vigilant in reviewing expenditures and commitments to ensure the project stays on track. “We have prepared scenarios to align project commitments with funding availability. The group has successfully settled its obligations as they arose,” he said.
The Karo Platinum Project represents a significant milestone for Zimbabwe’s mining sector, with its completion poised to bolster the country’s PGM production and economic growth.
