Karo Mining Holdings, the company spearheading the Karo Platinum project in Zimbabwe, has announced that its First Ore in Mill (FOIM) is now anticipated in the latter half of 2026.
This delay stems from funding slowdowns caused by a drop in platinum group metal (PGM) prices.
Platinum, alongside gold, remains one of Zimbabwe’s top export commodities. Active mining operations in the country include Zimplats, Mimosa Mining Company, and Unki Mine, with several additional projects currently in various stages of development.
Initially, Karo Holdings’ parent company, South Africa-based Tharisa Capital, had targeted 2024 for the project’s commissioning. However, declining PGM prices forced an initial rescheduling to mid-2025, with further revisions now pushing the timeline to the second half of 2026.
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Karo Mining noted that the project’s timeline has been negatively impacted by delays in funding caused by subdued PGM market conditions during the financial year ending September 30, 2024. This challenging environment prompted the company to conduct a comprehensive review of its commissioning schedule.
To address these challenges, Karo has adopted a strategy of dividing work streams into smaller, manageable segments to align progress with the availability of funds. This approach is designed to maintain development momentum despite external financial constraints.
“First ore in mill (FOIM) is now planned for the second half of 2026, while project work streams have been divided into smaller commitments to ensure continued development aligned with funding availability. During the year ended 30 September 2024, development of the Karo Platinum Project was slowed due to delays in funding work streams caused by PGM market conditions,” said Karo director Andrew Henwood in a financial statement for the year.
Despite the delays, Karo remains optimistic about the project’s long-term potential. The company emphasizes that the revised timeline must be viewed within the context of a multi-generational mining venture, which is expected to yield substantial resource benefits once its initial phase is completed.
Tharisa Capital has reaffirmed its commitment to funding the project, pledging US$135 million through equity and equity-like instruments, alongside various parent company guarantees to secure additional debt. As of the reporting date, US$107 million had already been allocated to ongoing construction activities.
The company is also in advanced negotiations to secure US$225 million in debt funding and an additional US$31.2 million through an equity partner to finalize the project’s construction phase.
The Karo Platinum project combines value engineering, mining operations, and process optimization to enhance efficiency and resource utilization. These concurrent activities aim to ensure that the project achieves its full potential.
Tharisa plc, Karo’s parent company, is listed on both the Johannesburg Stock Exchange (JSE) and the Main Board of the London Stock Exchange, reflecting its standing as a significant player in the mining industry.
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