Karo Platinum Project capex rises to US$546m

Published: 22 October 2025

The Karo Platinum Project's capital expenditure (capex) has increased by 6.45% to US$546 million, driven by higher costs in infrastructure, engineering, and processing, as the Zimbabwean platinum group metals (PGM) mine advances toward production.

Owned by Karo Mining Holdings, a subsidiary of Cyprus-based Tharisa Plc, the project sees Karo holding an 85% stake while the government's special purpose vehicle, Generation Minerals, retains the remainder. Tharisa is listed on both the London Stock Exchange and Johannesburg Stock Exchange.

An independent report by South African engineering consultant VBKOM in April 2025 had estimated a peak capex of US$512.9 million to generate revenues of US$2.74 billion. By July, Karo had already spent US$178 million, completing 80% of civil works and procuring 90% of long-lead equipment.

Situated along Zimbabwe's Great Dyke, about 85 kilometres southwest of Harare, the open-pit mine covers 23,903 hectares, with less than 10% currently developed. Once operational, the project is expected to produce 220,000 ounces of PGMs annually over a 10-year first phase, with underground mining planned for the remaining life of the mine, projected to exceed 50 years.

Karo has proposed extending the maturity of its Victoria Falls Stock Exchange (VFEX) listed bond by three years to December 2028 and increasing the coupon rate from 9.5% to 11% per annum to align financing with the extended construction timeline. The proposal will be tabled at an extraordinary general meeting of bondholders on November 7.

Construction began in December 2022, funded by US$160 million in equity and bond proceeds, but development was slowed in 2024 due to low commodity prices. Karo reports significant progress, including the commissioning of a PGM pilot plant, completion of 80% of civil works, procurement of 70% of equipment, and fabrication works reaching 37% completion.

The project comes at a time when global PGM supply is concentrated in South Africa and Russia, creating volatility and structural deficits. Market analysts, including JP Morgan, forecast platinum prices could reach approximately US$2,000 per ounce by the mid-2020s, potentially rising further by 2040, positioning Karo as a key player in the global market.

"The updated mine development entails a peak spend of US$546 million with first ore in the mill 15 months after financial close," Karo said in a circular to bondholders.

With the project nearing production, Karo Platinum is set to contribute significantly to Zimbabwe's PGM output and benefit from rising global platinum demand as supply from historic mines declines.
- newsday