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Karo Resources breaks ground on $4.2 billion platinum project in Zimbabwe

Ground has been broken on an multi-billion dollar platinum mine in Zimbabwe, the largest investment in the country’s history.

Karo Mining Holdings has officially launched its Mhondoro-Ngezi platinum mine project in Zimbabwe.

The project, valued at $4.2billion, will consist of a coal mine and 300MW solar power station.

Karo Mining Holdings has identified an open date for the first of four mines in 2020, with the company also expecting to produce up to 1.4 million ounces of platinum upon reaching full operational performance.

Earlier this year, Karo Holdings announced that it had entered into an agreement with the Mines Minister Winston Chitando which was described as the largest investment deal in Zimbabwe’s mining history.

The company also announced that it had received significant backing from a European PGM company, Tharisa.

 

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Tharisa acquired a 26.8% stake in Karo Holdings earlier this year in a deal worth $4.5million.

The deal saw Tharisa granted access to Karo Holdings’ PGM mining rights under a special grant covering an area of 23 903 hectares situated on the Great Dyke in the Mashonaland West District of Zimbabwe.

Tharisa will also provide a US$8 million debt facility to Karo Platinum for the initial geological exploration and sampling work to determine a compliant mineral resource.