LSE- and JSE-listed critical minerals mining company Tharisa’s Karo Platinum subsidiary has signed a purchase of concentrate (PoC) binding term sheet with a subsidiary of Valterra Platinum for the offtake of platinum group metals (PGMs) and base metal concentrate from the Karo platinum project, located on the Great Dyke, in Zimbabwe.

Karo Mining Holdings (KMH) holds an 85% interest in Karo Platinum, with the balance of 15% owned by the government of Zimbabwe through Generation Minerals Private on an unencumbered free carry. Tharisa owns 78.81% of KMH.

The PoC contract has an initial term of five years on customary offtake terms for concentrate purchases in the PGM industry.

Tharisa describes Karo Platinum as one of the largest undeveloped PGM assets on the Great Dyke, with an openpit mineral reserve of 2.1-million ounces of platinum, palladium, rhodium and gold (4E) and a mineral resource of 11.2-million ounces of 4E.

Together with potential underground mining, the project supports a mine life of more than 50 years.

The binding term sheet follows closely on Karo Platinum having signed a special mining lease agreement with the government of Zimbabwe, securing the tenure and fiscal certainty required to advance the Karo project towards first production.

Tharisa CEO Phoevos Pouroulis says that securing a concentrate purchase agreement with a partner of Valterra's standing and high-quality downstream processing footprint is a significant milestone for Karo, providing offtake certainty as Tharisa advances the project towards first production.

He adds that the agreement with Valterra underpins the bankability of Karo, reflects the quality of the asset and reinforces the partnership-led approach that has been central to Tharisa’s development since inception.

“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 says.

“We are pleased to enter into this agreement with Tharisa for the concentrate produced at Karo. 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,” adds Valterra CEO Craig Miller.

He says the agreement contributes to enhancing Valterra’s third-party processing portfolio.

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