South Africa’s Tharisa Capital is set to invest $250 million to complete the first phase of the Karo platinum project in Zimbabwe over the next two years after completing the full acquisition of the mine. The group increased its stake in Karo Mining to 66.3% from 26.8% by issuing 13.69 million new Tharisa shares to The Leto Settlement, which will retain the remaining 33.7%.
The Karo platinum project is located within the Great Dyke in the Mashonaland West District of Zimbabwe, some 80 kilometres southwest of the capital city Harare. The initial probable reserves deposit there is estimated to be around 35 million tons comprising platinum, palladium, rhodium and gold.
Mining accounts for 12% of Zimbabwe’s total GDP and although gold forms the bulk of its mining market, platinum is experiencing renewed attention. In 2021, the country generated $41.7 million in platinum exports with South Africa and Russia the main destination. Its output increased by 6% in January 2022.
Elsewhere, ten individuals of Zimbabwean nationality were sentenced to two years in prison by a South African court after being arrested for illegal mining activities in the Giyani area of Limpopo. In South Africa, illegal mining costs the economy around R21 billion annually. A few months ago, three Zimbabweans and a South African man were arrested by police in Limpopo.
