Tinashe Makichi
Karo Mining Holdings is planning to list on the Zimbabwe Stock Exchange as it seeks to raise part of the funding required for its $4,2 billion integrated platinum mining project in Mhondoro-Ngezi.
Karo Mining Holdings director Shawn McCormick told the Business Times that the mining company was considering several fund raising initiatives for the project which is set to change the local mining landscape.
“There is need to develop the resource and there are a whole variety of commercial channels, partnerships and individual investors that you bring to the table to make the project move forward.
“There are other options available to us in terms of where we take the company and list the company publicly to raise even more capital and the profile of the business,” McCormick said.
Tharisa will inject $8 million for initial activities of the project. The project will entail construction of concentrators, smelter and a refinery. The platinum project is set to turn Zimbabwe into one of the global market leaders within the next five to 10 years.
While the mining group still requires the usual regulatory approvals before pushing ahead, Karo foresees the establishment of the first open pit mine in 2020 progressing to full production in 2023.
The new complex at Karo operations will consist of multiple mines, concentrators, smelters and PGM and base metal refineries. Under the scope of the project, Karo will also produce 300 MW of renewable energy in the form of solar power to be fed into the national grid supporting Zimbabwe’s objectives of having a balanced mix of power supply.
The management of Karo has overseen the building of some of the largest and successful mines in the world from Eland Platinum, Kameni and Tharisa in chrome and platinum projects, to Petra Diamonds and Rainbow Rare Earths.
McCormick said the resources firm would not be venturing into gold mining but will focus on platinum, chrome and coal mining.
On coal, he said the firm has been in discussion with government to secure claims.
“Coal is part of this project and we have been in discussions with government for many years and this is the first part of the aspect moving forward. The coal is on the other part of the country but we have been in discussion with government about those resources but it’s all a development process and this is the first phase (platinum).
“I think on the ownership of coal claims you only pay for something for what it’s worth. So we are working with Government on this and we are not going out there to take over other people’s property. We are in dialogue with Government about that. Coal is a future opportunity for the company,” said McCormick.
The miner’s primary focus would be the viable extraction of primary metallurgical coal products, which will be utilised for Karo Mining Holdings’ value addition initiatives, with surplus being supplied to the local Zimbabwean ferro-alloy and steel industries.
Asked on the current economic environment, McCormick said things were getting better since the change in political leadership on the investment front.
“On the current economic environment I think things are getting better, I am not Zimbabwean, I am American. There is a huge desire and aspiration, not only within Zimbabwe but in the region. The future for Zimbabwe is bright,” he said.
