Tharisa plc-owned Karo Platinum has retrenched 16 permanent employees and terminated the contracts of several contractors as part of its strategic decision to optimize costs in response to the continued depression of platinum group metal (PGM) prices, Mining Zimbabwe can report.
By Rudairo Mapuranga
This move, effective from January 31, 2025, comes as the company reassesses its expenditure to align operational objectives with available financial resources for the year.
In a statement, Karo Platinum confirmed that over US$150 million had already been invested in bulk earthworks, civil works, and the procurement of long lead-time equipment for its project. Despite this significant progress, the current market environment has necessitated a review of ongoing costs. Fixed-term contracts were allowed to lapse naturally, and a workforce reduction was executed, impacting 16 permanent employees. The retrenchment process was conducted in strict adherence to Statutory Instrument 191, introduced on December 6, 2024.
“Karo understands the distress such situations can cause and has made considerable efforts to address and resolve any legitimate claims and concerns raised by the affected employees with compassion and diligence,” the company stated.
Despite the workforce reductions, Karo Platinum remains optimistic about the project’s future. Preparations are underway for the construction of a 5,000-megalitre dam on the Chirundazi River and a 32-kilometre power line to connect with the Selous substation, ensuring a reliable water and power supply for its operations. The company has also scheduled a new underground drilling campaign for 2025, which is expected to further advance the project’s development.
The retrenchments at Karo Platinum reflect the broader challenges facing Zimbabwe’s PGM sector, which has been severely impacted by declining metal prices. Of the three operational PGM mines in Zimbabwe—Mimosa, Zimplats, and Unki—only Unki has avoided retrenchments. Both Zimplats and Mimosa have made difficult adjustments in response to softening market conditions, with Zimplats implementing a 10% salary reduction for its employees.
While these developments pose challenges for the sector, Karo Platinum remains focused on its long-term goals. The company continues to prioritize the creation of a globally significant, low-cost PGM operation that will contribute to Zimbabwe’s economy and play a key role in supplying strategic commodities for a sustainable future.
As Karo advances its project, it is actively securing funding to complete construction and commission its concentrator—an essential milestone for achieving its 2025 operational targets. Although the current market conditions have necessitated cost-cutting measures, Karo remains confident in its long-term vision of delivering a sustainable, value-generating operation in the PGM sector.
