Tharisa Capital says the development of the tier 1 Karo Platinum Group Metals (PGMs) project will see the group’s PGM production doubling within the next 24 months.
The London – listed platinum miner which recently acquired a controlling stake in Karo Holdings, intends to spend US$250 million to complete the first phase of the project.
“We progressed our much anticipated cross borderstep by announcing our plans for developing the tier 1 Karo PGM project, doubling our PGM production within 24 months,”
Phoevos Pouroulis, the Tharisa’s chief executive said in a commentary for the Group’s second quarter ended 31 March 2022.
He said the transformation of Tharisa into a multi-asset, multi-commodity and multijurisdiction business, combined with strong PGM and chrome prices, as well as the further production upside from initiatives including the ramp of the Vulcan Plant at the Tharisa Mine, provide a very healthy outlook for the prospects of the Company in the second half of the year, and beyond.
Tharisa increased its shareholding in Karo Holdings to 66.3 percent and this was completed post quarter end.Pouroulis said an implementation study at Karo Platinum provided the robust economics of the first phase of the project while still presenting significant growth opportunities.
According to Tharisa, at the start of production in two years, annual production will be 150
000 ounces of PGMs in concentrate during the first phase.
Tharisa’s mining lease area for the Karo project covers an area of 23,903 hectares and is located within the Great Dyke in the Mashonaland West District, approximately 80km southwest of Harare.
The Zimbabwe government has a 15 percent stake in the Karo project and it has an option to buy another 11 percent.
Based on Karo’s valuation of US$770.4 million, the Government would have to spend US$84,7 million if it chooses to take up the option.
According to Pouroulis, the Salene Chrome plant commissioning is underway and production due to commence in Q3 FY2022.
Tharisa acquired a 90 percent shareholding in Salene Chrome Zimbabwe (Pvt) Limited (Salene) in 2018 from the Leto Settlement Trust (Leto), a related party being the beneficial shareholder of Medway Developments Limited, a material shareholder in Tharisa.
The effective date of the acquisition was 15 May 2018 and Leto retained a 10 percent free carried shareholding in Salene and was entitled to a 3 percent royalty on the gross proceeds from the sale of the chrome concentrates produced.
Salene was awarded three special grants under the Zimbabwe Mines and Minerals Act covering an area of approximately 9 500 hectares (95 km2) on the eastern side of the Great Dyke in Zimbabwe, which entitles it to mine the minerals thereon including alluvial chrome, being at surface chrome fines generated from seams as a result of weathering.
The country is envisioning a US$12 billion mining industry by 2023. PGMs are expected to contribute US$3 billion with production expected to jump from about 979 thousand ounces in 2018 to about 2, 5 billion ounces annually in 2023.
Gold, diamonds will contribute US$4 billion and US$1 billion respectively, while chrome, iron ore and carbon steel will contribute US$$1 billion while coal and hydrocarbons will contribute the same. Lithium at US$500 000 while other minerals will constitute US$1.5 billion.
