Tharisa has secured a 25-year Special Mining Lease Agreement with the Government of Zimbabwe for its Karo Platinum Project, providing long-term tenure and fiscal certainty for the development of one of the Great Dyke’s largest undeveloped platinum group metals (PGM) assets.
The agreement was signed at State House in Harare in the presence of Zimbabwean President Emmerson Mnangagwa, with the fiscal terms agreed between Karo Platinum Private Limited and the government.
Zimbabwe’s Minister of Mines and Mining Development Dr Eng. Polite Kambamura said: “The signing of this Special Mining Lease Agreement marks a proud and progressive moment for Zimbabwe’s mining sector. It reflects the confidence that responsible investors continue to place in our country, our people and the immense potential of the Great Dyke. The Karo Platinum Project is an important national development asset, and this agreement provides the long-term certainty required to unlock investment, create employment, build skills and contribute meaningfully to economic growth.”
The lease, granted under Zimbabwe’s Mines and Minerals Act, covers the project’s 23,903-hectare mining area and establishes the fiscal and operating framework for the project.
Karo has an open-pit Mineral Reserve of 2.1 million ounces and Mineral Resource of 11.2 million ounces, both on a 4E basis, with underground mining potential supporting a potential mine life of more than 50 years.
Phase 1 is expected to employ more than 1,000 people and produce 226 koz of PGMs annually once ramped up.
Tharisa CEO Phoevos Pouroulis said: “The signing of this Special Mining Lease Agreement is a defining milestone for Karo Platinum and for Tharisa’s growth strategy. It gives us the long-term security of tenure and fiscal certainty needed to advance a project of this scale and strategic importance, while reinforcing the Government of Zimbabwe’s commitment to the responsible development of its mineral endowment.”
Karo Platinum Private Limited is 85% owned by Karo Mining Holdings, which is controlled by Tharisa, while the Zimbabwean government holds the remaining 15% through Generation Minerals on a free-carried basis.
More than US$240 million has been invested in the project since construction started in December 2022, including spending on the processing plant, mining fleet, water and power infrastructure, and community programmes.
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The 25-year lease removes a key development uncertainty for the Karo Platinum Project and provides the fiscal and tenure framework needed to progress it towards production. With substantial capital already deployed and Phase 1 targeting 226 koz of annual PGM output, the agreement marks an important de-risking milestone for Tharisa’s long-term growth pipeline.