Tharisa performance key to Karo development
KARO Mining Holdings’ development depends on the performance of parent company Tharisa which produced impressive results in 2023, according to the company’s executive.
Tharisa currently holds a 70 percent stake of Karo Mining with Leto Settlements holding the balance.
Chief executive officer (CEO) of Tharisa, Phoevos Pouroulis last week said: “Regarding the Karo Platinum Project, the review of the commissioning timeline remains on track for first ore in the mill by June 2025. Funding solutions ring-fenced to Karo Platinum are being pursued in line with the revised production timeline.
“A positive start to our new financial year (Tharisa results) in what is traditionally a tough quarter, with the festive season and inclement weather typically causing challenges to operations.
“We have made good operational improvements, with waste mining advances leading to a better mining and plant performance, resulting in record quarterly chrome production.
“This performance is vital and underpins our development of the Karo Platinum Project in Zimbabwe and sets the trajectory for the coming decades at our multi-generational Tharisa Mine.”
Such a pronouncement comes as Karo says talks are underway to secure US$260 million in loan money to finance the Karo Platinum Project.
The Karo Platinum Project, which aims to build a 17-year opencast mine is utilising a multi-phased development model.
The first exploratory operations were initially financed by a US$8 million financing facility by parent company, Tharisa.
On top of the stock and quasi-equity that the company planned to raise to finance the Karo Platinum Project, Tharisa pledged to fund the project with US$135 million; US$65 million of that sum has already been provided.
In a statement accompanying the results for the year ended September 30, 2023, Karo Holdings said the remaining US$70-million is available for drawdown.
On the other hand, negotiations are still ongoing to secure US$260 million in loan money to finance the Karo Platinum Project.
“Negotiations are well advanced by Karo Platinum on a senior project finance facility and a term sheet has been agreed with a consortium of lenders, supported by political and commercial risk insurance, for an amount of US$160 million,” reads the Karo statement.
“Negotiations for the balance of the funding are on-going and the alternatives include commodity pre-payments, by-product and base metal streaming transactions, working capital facilities and possible strategic investors.”
Karo Platinum has advisors assigned to counsel it on these options.
“The prospects of success are considered high based on the long asset life of the project and core commodity fundamentals,” further reads the report.
“The directors have and will continue to review the spending, investment and commitments in the project; and have prepared scenarios to match the project commitments and funding availability should it be required to maintain available funds for the foreseeable future.”
Karo, which is 80 km southwest of Harare, has been granted a special concession in the Great Dyke.
The Great Dyke covers 23 902,9 hectares and is home to the primary PGM- and base metal-rich sulphide zone in Mashonaland West province.