Tharisa has secured a platinum group metals (PGM) mining lease for its Karo Mining project in Zimbabwe as it advances the venture, in which it has already spent $240 million, towards initial production.
The special mining lease agreement was signed in Harare on Monday by Karo and Zimbabwe government officials including Mines Minister Polite Kambamura and Finance Minister Mthuli Ncube. The agreement secured “the tenure and fiscal framework required to advance the Karo Platinum Project towards first production,” said Tharisa in a statement.
Karo owns 85% of the Zimbabwean project while the Zimbabwe government holds the remaining 15% through an entity known as Generation Mineral. Zimbabwe is seeking to re-assure investors in its vast mining sector.
Zimbabwean President Emmerson Mnangagwa said the mining lease agreement “secures long-term tenure over a 23 903-hectare mining area” in the country’s mineral plush Great Dyke. Karo will have initial tenure over the lease for 25 years.
“With over US$240m already invested in plant establishment, mining fleets, water and power infrastructure, and community development, Phase 1 alone is set to create up to 1 000 jobs for our people,” said Mnangagwa.
Tharisa said signing of the mining lease agreement was helpful in “the de-risking and advancement of the PGM project as Karo progresses towards first production of PGM concentrate. Zimbabwe is enforcing a local beneficiation policy under which it intends to ban exports of metals that are not beneficiated.
Other South African PGM producers in Zimbabwe such as Zimplats and Mimosa ship a semi processed matte for final refinery outside the country.
The Karo project is one of the largest undeveloped PGM assets on the Great Dyke, with an open pit mineral reserve of 2.1 million ounces and a mineral resource base of of 11.2 million ounces.
When underground mining is factored in, Karo has potential to support a life of mine of over 50 years. The signing of the lease agreement comes at a time when PGM prices have started to recover.
“This agreement is an important milestone not only for Karo Platinum, but for Zimbabwe’s mining sector and investment climate,” said Kumbirayi Katsande, chairman of Karo Platinum.
The Zimbabwe project falls under Tharisa’s growth strategy, said Phoevos Pouroulis, CEO of Tharisa, adding that the first phase of the project is targeted to deliver 226 000 ounces per year of PGMs.
Earlier this year, Tharisa secured additional financing facilities from HSBC and ABSA CIB, with the new capital advances expected to shore up the South African miner’s trade finance activities.
The Hongkong and Shanghai Banking Corporation Limited (HSBC) availed $30m for Tharisa while SA banking group ABSA advanced $15m.
HSBC and ABSA CIB are existing financiers for Tharisa, listed in Johannesburg and London. The new trade finance facilities will “provide greater flexibility, improve working capital efficiency, andenhance” Tharisa’s trading capabilities.
The new funding was earmarked for Arxo Resources, the trading company under Tharisa.
Over the year to end September 2025, Arxo Resources traded 1.5 million tonnes of chrome concentrates. Such volumes have been helpful for the company in negotiating “improved unsecured, revolving trade finance facilities.
It further stated that the new funding facilities align with Tharisa’s capital allocation priorities, including maintaining a robust liquidity position, supporting the ramp-up of growth initiatives, and continuing to deliver shareholder returns.
For its 2025 year, Tharisa recorded an operating profit of $125.6m after generating $94m from operations.
Direct and indirect currency inflows into South Africa for Tharisa amounted to $430m against the backdrop of tax and royalty payments of $31.7m for the period.
Tharisa subsequently paid a total dividend of 3 cents (USD) per share for 2025.
The National