Tharisa PLC, a Johannesburg Stock Exchange (JSE)-listed metals miner and the parent company of Karo Mining Holdings, stated in its Q1 2025 update that it will continue to evaluate and implement value engineering opportunities at its Karo Platinum project in Zimbabwe.
By Ryan Chigoche
This development comes amid a difficult period for the platinum group metals (PGM) sector, which is plagued by low global prices. The company’s focus on optimizing cost efficiencies is essential to maintaining the long-term viability of the Karo Platinum mine and its other operations.
Value engineering is a structured approach used in project management to improve the value of a product or process. It involves analyzing functions and identifying ways to reduce costs while preserving quality and performance. In mining, this may include finding more cost-effective alternatives for materials and methods, streamlining labour and operations, or improving logistical strategies.
For Tharisa, value engineering has become particularly important due to the prolonged period of low PGM prices. The company is scrutinizing every aspect of the Karo Platinum project, including equipment procurement and operational techniques, all aimed at ensuring the mine remains competitive and sustainable despite market fluctuations.
The global PGM market has faced significant pressure in recent months. One of the primary factors affecting the market is the decline in demand from key industries, particularly automotive manufacturing, which has long been one of the largest consumers of platinum. As vehicle production and demand for platinum-based components have slowed, the drop in PGM prices has been significant, forcing many mining companies to adjust their strategies.
In its first-quarter production update for the fiscal year 2025, Tharisa reported a marginal increase in PGM prices. The average price was US$1,381 per ounce, up slightly from US$1,370 per ounce in the final quarter of the fiscal year 2024. While this increase is a sign of modest improvement, it has done little to alleviate the broader challenges posed by subdued global demand. The persistently low prices have left companies like Tharisa searching for ways to reduce exposure to market volatility. Value engineering is now serving as a critical tool in that process.
Tharisa’s proactive response to this challenging environment involves reengineering its processes and projects to maximize efficiency.
For Tharisa, the Karo Platinum project represents a key part of its growth strategy. The mine, located on Zimbabwe’s Great Dyke, is expected to significantly increase the company’s platinum production and contribute to the country’s export revenues. Initially, Tharisa had hoped to begin production in mid-2024, but delays in securing funding and the weak PGM market have pushed back the timeline. Production is now expected in the second half of 2026.
Despite these delays, Tharisa remains committed to the Karo Platinum project. The company’s ongoing efforts in value engineering, along with its focus on securing the necessary financing, are critical to ensuring that the mine meets its potential once market conditions improve. The company believes that despite the volatility of the PGM market, demand for platinum will continue in the future, particularly as global supply deficits are forecasted to grow.
By maintaining a sharp focus on cost reductions through value engineering and optimizing development strategies, Tharisa aims to ensure that the Karo Platinum project delivers strong results even in a volatile pricing environment. As the company navigates these challenges, its long-term outlook remains positive, with the expectation that future price increases and supply shortages will ultimately drive the success of the Karo Platinum mine.