Karo to contribute 2% of GDP
Tharisa’s Karo Platinum project in Chegutu will contribute 2 per cent of the country’s Gross Domestic Product (GDP), Karo Platinum Managing Director Bernie Pryor said.
Speaking at the commencement of the Ceremony in Selous on Wednesday the Karo Managing Director said the project will play a significant role towards economic revival and will create hundreds of jobs in its first phase of mining where the project has 17 years life of mine.
“This project will produce nearly two per cent of the country’s GDP. It will cost in the region of about US$400 million.
“We need to build this project and operate it safely. We will commence production on July 4 and establish a world-class Mine that we are all proud of,” Pryor said.
Speaking at the same event, the Minister of Mines and Mining Development Hon Winston Chitando said the Karo Resource project is a game changer and a testimony of the government’s open-for-business mantra.
He said, the commencement of production by Karo will be significant and a testimony of government commitment towards engagement and re-engagement drive.
“It is exciting to note that a number of developments are happening within the platinum mining sector, pointing towards growth in line with Government’s vision. The growth is mainly anchored on exploration, opening up of new mines as well as expansion of existing projects and Karo Platinum (Pvt) Ltd is a testimony.
“Karo Platinum (Pvt) Ltd is proof of the natural geologically endowment of Zimbabwe and how it can be developed for all to benefit.
“The Government of Zimbabwe will always strive to ensure there is an enabling environment that supports business growth and security of tenure. We invite all our investors to come to Zimbabwe and do business with us for mutual benefits between Zimbabwe and the investors. Indeed, Zimbabwe is Open for Business”.
It is pleasing to note that the Government of Zimbabwe are partner in this project and we have a 15% free carry in the project, and together we will ensure this project is developed.
Regulatory approvals have been smooth and have assisted Karo Platinum (Pvt) Ltd in ensuring their fast-track approach to developing this project remains in force. Karo Platinum (Pvt) Ltd is proof of the natural geologically endowment of Zimbabwe and how it can be developed for all to benefit.
Quick development timeline with funding provided by Karo Platinum (Pvt) Ltd partner Tharisa PLC, who have a track record of building mines and running them profitably and sustainably,” He said
Minister Chitando also reiterated the government’s commitment to supporting business growth and invited interested investors.
“The Government of Zimbabwe will always strive to ensure there is an enabling environment that supports business growth and security of tenure. We invite all our investors to come to Zimbabwe and do business with us for mutual benefits between Zimbabwe and the investors. Indeed, Zimbabwe is Open for Business.
“It is pleasing to note that the Government of Zimbabwe are a partner in this project and we have a 15% free carry in the project, and together we will ensure this project is developed.
“Regulatory approvals have been smooth and have assisted Karo Platinum (Pvt) Ltd in ensuring their fast-track approach to developing this project remains in force.
“It is worth noting that 1 000 direct jobs are to be created during construction, and further 7 000 indirect jobs and over 100 jobs have already been created with active recruitment underway,” Minister Chitando concluded.
Tharisa Chief Executive Officer Pheovos Pouroulis said due to power challenges in the Southern African region and the need by the mine to adhere to the clean energy revolution, Karo establish a 300 MW solar energy plant, with 30 MW already in place before the commencement of production.
Karo signed an MOU with French group Total Eren to build a solar power plant near Selous power station.
The Karo Platinum project’s commencement of production is set for July 2024.
A number of developments are happening within the platinum mining sector, pointing towards growth in line with Government’s vision for the country to become an upper-middle-income economy by 2030 and US$12 billion by 2023. The growth is mainly anchored on exploration, opening up of new mines as well as expansion of existing projects.