Tharisa plc says it is making progress toward securing funding for its Karo Platinum project in Zimbabwe, as negotiations with the government on fiscal stability agreements near completion, with first ore processing targeted for the second half of 2027 as development gains momentum, Mining Zimbabwe can report.
By Ryan Chigoche
Fiscal stability agreements under discussion for the Karo Platinum project form part of a broader project-specific fiscal regime being negotiated between Tharisa and the Zimbabwean government to support what the company has described as a “Tier 1” investment.
These arrangements are aimed at enhancing project bankability by providing long-term certainty on taxes, royalties, and operating conditions, while aligning with incentives typically granted within Zimbabwe’s Special Economic Zones.
The company has previously said finalising these terms is critical to unlocking funding, with insufficiently attractive fiscal conditions cited as a constraint to securing capital for the large-scale greenfield development.
In its production report for the second quarter ended March 31, 2026, Tharisa said funding discussions for the Karo Platinum project are advancing alongside talks with the government on fiscal stability agreements, as the project has entered a new phase following the mobilisation of a mining contractor at the end of the previous quarter.
“We continue to make good progress in further de-risking our Karo Platinum project in Zimbabwe, with open-pit surface clearing commencing as planned. The funding is subject to final agreement with the Government on the fiscal stability agreements, which are nearing conclusion,” the company said.
Tharisa plc plans to invest about $391 million to complete Phase 1 of the project. Since June 2022, it has committed more than $131.3 million in capital, alongside $17.6 million on exploration and pre-development work.
Located along the Great Dyke, Karo is designed as a large-scale operation, beginning with a 10-year open-pit phase before transitioning into a 30-year underground mine.
The project is expected to produce up to 226,000 ounces of platinum group metals annually at full capacity, positioning it among Zimbabwe’s emerging major producers alongside Zimplats Holdings Limited, Unki Platinum Mine, and Mimosa Mining Company. Bravura Holdings is also advancing a separate platinum project.
The development is expected to lift national PGM output by roughly 20% and contribute close to 2% of gross domestic product, underscoring its strategic importance.
The company is also progressing infrastructure works, including securing power and water supply and procuring long-lead equipment for construction and future operations.
For years, the Karo project has faced delays due to weak PGM prices and funding constraints, with initial production timelines shifting from 2024 to 2025–26. The latest schedule now targets the first half of 2027 as construction advances and market conditions improve.
After several years of subdued pricing, platinum group metals rebounded strongly in 2025.
Platinum rose about 76% year-to-date, palladium gained roughly 56%, and mid-year prices climbed above $1,250 an ounce. By late 2025, platinum was on track for a record annual increase of around 146%, lifting the average PGM basket price by about 30% to nearly $1,916 an ounce.
