Tharisa has secured US$300 million in bond financing to advance its Karo platinum project in Zimbabwe, closing a substantial part of the funding requirement for the US$545 million development as it targets first ore in late 2027, Mining Zimbabwe can report.
By Ryan Chigoche
The five-year senior secured Nordic bond, priced at an 11% coupon, was oversubscribed by more than 150 institutional investors, giving Tharisa capital to move Karo into its peak construction phase.
Tharisa has previously put Karo’s development cost at about US$545 million and disclosed roughly US$241 million in investment in the project, meaning the latest bond could cover a substantial portion of the remaining requirement.
Karo’s first phase is designed to produce about 226,000 ounces of PGMs a year, adding significant new production to Zimbabwe’s established platinum industry, which includes Zimplats, Unki and Mimosa.
The funding marks a shift for Karo after its development timeline was affected by weaker PGM prices and more difficult financing conditions. The project is now advancing as platinum prices recover, improving the backdrop for Tharisa’s expansion into Zimbabwe.
The bond was issued by Arxo Finance Plc, a wholly owned Tharisa subsidiary, at 98% of face value. The proceeds will be held in escrow pending satisfaction of release conditions and will primarily fund Karo’s development and construction.
Tharisa expects first ore to reach the mill in the fourth quarter of 2027.
The financing follows two other milestones for the project. Tharisa signed a Special Mining Lease Agreement with the Zimbabwean government on Aug. 20, strengthening the long-term tenure and fiscal framework for Karo.
It has also secured a long-term offtake agreement with Valterra for PGM concentrate from the project, giving the future operation a committed market for part of its production before it reaches first ore.
The project is located on Zimbabwe’s Great Dyke, one of the world’s major PGM-bearing geological formations. Tharisa expects Karo to more than double its PGM output once the project is fully developed.
The Zimbabwe government holds a 15% free-carried interest in Karo through Generation Minerals, giving the project a direct stake in the country’s mineral development ambitions.
The financing comes as the PGM market shows signs of improvement. Platinum traded above US$1,800 an ounce in early September, while Tharisa’s spot PGM basket price was about US$2,719 an ounce.
Tharisa’s chrome business also remains part of its strategy for funding PGM growth, with spot chrome prices at about US$290 a tonne.
“Karo is now positioned to enter the peak construction phase with confidence,” Chief Executive Officer Phoevos Pouroulis said.
The bond also expands Tharisa’s funding base beyond traditional bank debt and equity, bringing international fixed-income investors into the company’s expansion plans.
Tharisa is developing Karo alongside the transition of its namesake mine in South Africa from open-pit to underground operations.
Development of the Apollo underground complex, which began in March, is approaching first run-of-mine ore, with steady-state production targeted at 255,000 tonnes a month by the third quarter of 2029. The Orion complex is expected to follow, with first ore targeted for the 2031 financial year.
Together, the underground complexes are expected to extend mining at the South African operation by more than 60 years beyond depletion of the current open pit.
For Karo, the immediate focus is now construction, with the US$300 million bond providing much of the capital needed to advance the project toward its 2027 production target.
The development would give Tharisa a second Tier 1 PGM asset and add a new large-scale operation to Zimbabwe’s platinum sector as the country seeks to attract more capital into mineral production and beneficiation.
