Karo Mining Holdings, a Victoria Falls Stock Exchange-listed platinum miner once touted as a game-changer for Zimbabwe’s mining sector, is reportedly cutting jobs and delaying key projects amid financial strain.
The company, which initially aimed to become a major platinum producer, is facing mounting challenges, allegedly leading to a retrenchment process.
The move has sparked controversy over claims of inadequate consultation with affected employees and accusations of favoritism toward individuals connected to management, raising concerns about fair labor practices.
The company has been hit hard by a slump in platinum group metal (PGM) prices, which have fallen 26% from an average of $2,564 per ounce in 2022 to $1,893 per ounce in 2023.
The price drop has forced Karo Platinum to restructure its projects into smaller phases that align with available funding.
The commissioning of its platinum project, initially scheduled for July 2024 and later pushed to June 2025, is now expected in the second half of 2026 due to ongoing financial constraints.
Despite the setbacks, Karo Platinum remains optimistic about the long-term outlook for the PGM market and is actively pursuing $225 million in debt financing and $31.2 million from an equity partner to complete project construction.
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