Tharisa secures concentrate offtake deal for Karo Platinum

Nelson Gahadza

Senior Business Reporter

THARISA Plc has secured a five-year concentrate purchase agreement with Valterra Platinum for output from its US$4,2 billion Karo Platinum project in Zimbabwe, marking a key milestone towards development of the long-awaited mine.

Karo Platinum Private Limited has signed a binding purchase of concentrate term sheet with a subsidiary of Valterra for the purchase of platinum group metals (PGMs) and base metal concentrate produced at the project, which is located on Zimbabwe’s mineral-rich Great Dyke.

The agreement provides Karo with offtake certainty as Tharisa advances the project towards construction and eventual first production.

Tharisa chief executive Mr Phoevos Pouroulis said securing a partner with Valterra’s downstream processing capacity strengthened the project’s prospects and would support its financing and development.

“Securing a concentrate purchase agreement with a partner of Valterra’s standing and high-quality downstream processing footprint is a significant milestone for Karo Platinum, providing offtake certainty as we advance the project towards first production,” he said.

Mr Pouroulis added that the agreement demonstrated the quality of the Karo resource while reinforcing Tharisa’s partnership-led approach to developing mining assets.

“We view Valterra as an ideal partner for the next phase of our growth and look forward to deepening our cooperation as Karo progresses,” he said.

Valterra chief executive Mr Craig Miller said the agreement reflected the company’s confidence in the fundamentals of the PGM market and Karo’s mineral potential.

“We are pleased to enter into this agreement with Tharisa for the concentrate produced at Karo Platinum,” Mr Miller said.

“The agreement reflects our confidence in the fundamentals of the PGM market and Tharisa’s ability to develop this project on the high-quality mineralised zone of Zimbabwe’s Great Dyke.”

He said the deal would also expand Valterra’s third-party processing portfolio while creating an opportunity for a long-term partnership with Tharisa.

Karo Platinum is one of the largest undeveloped PGM resources on the Great Dyke and is expected to become a significant addition to Zimbabwe’s mining sector once developed.

The project has an open-pit Mineral Reserve of 2,1 million ounces on a four-element (4E) basis, comprising platinum, palladium, rhodium and gold, while its Mineral Resource stands at 11,2 million ounces.

Tharisa says the resource base, together with potential underground mining, supports a mine life of more than 50 years.

Karo Platinum is 85 percent owned by Karo Mining Holdings Plc, while the Government of Zimbabwe holds a 15 percent free-carried interest through Generation Minerals Private Limited.

Tharisa owns 78,81 percent of Karo Mining Holdings.

The offtake agreement comes after Karo Platinum secured a Special Mining Lease Agreement with the Government, providing the tenure and fiscal framework required to progress the project.

Mr Miller said Valterra welcomed the opportunity to establish a relationship with Tharisa based on reliability and operational performance.

“We welcome the opportunity to build a constructive and enduring partnership between Valterra and Tharisa, founded on operational excellence, reliability and shared value creation,” he said.