LSE- and JSE-listed critical minerals mining company Tharisa's 85%-owned Karo Platinum subsidiary has signed a special mining lease agreement with Zimbabwe for an initial term of 25 years.

This secures the tenure and fiscal framework required to advance the Karo project towards first production, the company says.

Phase 1 is designed to employ more than 1 000 people and deliver 226 000 oz/y of platinum group metals (PGMs), once ramped up. This will position Karo Platinum as a cornerstone of Zimbabwe's mining sector and a central pillar of Tharisa's growth strategy through to 2030.

The special mining lease agreement is a significant milestone in the de-risking and advancement of the project and provides long-term security of tenure and fiscal certainty to support Karo’s progression towards first production of PGM concentrate.

The agreement confers long-term tenure over the project's 23 903 ha mining area on the Great Dyke and establishes the fiscal and operational framework applicable to high-value, large-scale mining projects of national significance.

The agreement also provides certainty for both investor and host nation, Tharisa says.

Karo Platinum is one of the largest undeveloped PGM assets on the Great Dyke, with an openpit mineral reserve of 2.1-million ounces and a mineral resource of 11.2 million ounces.

With potential for underground mining, the project supports a mine life in excess of 50 years.

Construction began in December 2022 and pilot mining started in June 2023. More than $240-million has been invested in the project to date to fund process plant infrastructure, mining fleet, water and power infrastructure and the community and social programmes that underpin its social licence to operate.

Karo Platinum has progressed steadily and weathered shifting PGM market conditions to remain one of the standout greenfield PGM developments globally. The agreement caps the period of de-risking and signals the start of a more certain, more focused next chapter for the project, Tharisa says.

“The special mining lease provides the long-term certainty required to progress a project of this national significance, while demonstrating Zimbabwe’s commitment to attracting responsible, long-term investment into its mineral resource base,” says Karo Platinum chairperson Kumbirayi Katsande.

“The signing of this special mining lease agreement is a defining milestone for Karo Platinum and for Tharisa’s growth strategy. It provides the long-term security of tenure and fiscal certainty required to advance a project of this scale and strategic importance, while reinforcing the Government of Zimbabwe’s commitment to the responsible development of its mineral endowment,” says Tharisa CEO Phoevos Pouroulis.

“We look forward to advancing the project in partnership with our host communities, stakeholders and the people of Zimbabwe.”

“The signing of this special mining lease agreement marks a proud and progressive moment for Zimbabwe’s mining sector,” says Zimbabwe Mines and Mining Development Minister Polite Kambamura.

“The Karo platinum project is an important national development asset, and this agreement provides the long-term certainty required to unlock investment, create employment, build skills and contribute meaningfully to economic growth. We look forward to the successful advancement of this project for the benefit of local communities, the mining industry and the nation as a whole.”