JSE-listed South African mining company Tharisa has reaffirmed its confidence in the Platinum Group Metals (PGMs) market as it advances the Karo Platinum Project, citing strong global demand fundamentals and a structurally balanced market, Mining Zimbabwe can report.
By Ryan Chigoche
The commissioning timeline of the Karo Platinum Project, located in the middle chamber of the southern portion of Zimbabwe’s Great Dyke, has faced multiple delays due to fluctuations in PGM prices and broader macroeconomic challenges.
During the low-price environment of recent years, many PGM miners deferred or scaled back capital expenditure projects, with Tharisa postponing the US$391 million Karo Platinum Project accordingly.
Recent market movements, however, have changed the landscape. As of October 22, 2025, platinum prices have rebounded to approximately US$1,516 per ounce, an 80% year-to-date increase, while palladium has strengthened to around US$1,443 per ounce, rising over 60% since January.
In a production update for the quarter ending September 2025, Tharisa CEO Phoevos Pouroulis highlighted the company’s long-term optimism, emphasising the resilience of the market and the strategic value of Karo.
“Global demand trends, coupled with a constrained and complex supply response, have resulted in a market that is well-supported and structurally balanced. This equilibrium underpins our positive outlook, as highlighted in our continued long-term investment in our strategic assets,” he said.
Pouroulis pointed to ongoing infrastructure developments as evidence of progress at Karo.
“Karo Platinum infrastructure work is continuing, with ball mills being delivered and installed on site, while work is continuing at the Chirundazi Dam expansion. We continue to see compelling growth opportunities in our business, with material advances—despite measured capital allocation—at Karo,” he noted.
He also stressed that Tharisa’s expansion strategy aligns with disciplined capital allocation to ensure long-term value creation, balance sheet strength, and sustainable shareholder returns.
The project’s commissioning history underscores the challenges the sector has faced. Initially slated for July 2024, commissioning was delayed in October 2023 by 12 months due to weak PGM prices and global economic uncertainty.
A further postponement to the second half of 2026 was announced in January 2025, attributed to low PGM prices and financing hurdles. However, no further delays are expected, with Pouroulis identifying the PGM market—particularly platinum—as one of the strongest-performing commodities in 2025, supported by supply deficits, tightening stocks, and underlying structural market balance.
“This equilibrium underpins our positive outlook, as highlighted in our continued long-term investment in our strategic assets,” he said, signalling Tharisa’s commitment to leveraging robust market conditions to grow the Karo Project and deliver sustainable shareholder value.
The Karo operation is planned to feature a 10-year open-pit phase, followed by a 30-year underground mine, with projected annual production of up to 226,000 ounces of PGMs.
Tharisa’s steady progress at the Karo Platinum Project is underpinned by a structured financing strategy that combines equity and debt.
The company holds a 70% stake in Karo Mining Holdings, which owns 85% of the project, giving Tharisa effective control, while the remaining 15% is held by the Republic of Zimbabwe through Generation Minerals on a free-carry basis.
To fund development, Tharisa has secured a US$36.8 million debt instrument on the Victoria Falls Stock Exchange (VFEX) and a US$130 million debt facility, while exploring strategic partners or streaming agreements to cover remaining capital needs.
In line with the project’s timeline, Karo Mining Holdings has also proposed a three-year extension of its VFEX-listed bond to December 2028, aligning repayment with key development milestones.
This balanced approach ensures the financial viability of the project while supporting Tharisa’s continued advancement of Karo and the delivery of sustainable shareholder value.
