Karo Mine commissioning pushed back

WEAKENING commodity prices on the world market have forced commissioning of the Karo Platinum Project, which is owned by Johannesburg Stock Exchange-listed Tharisa Capital, to be pushed back to June.

In an interview with The Sunday Mail, Karo’s head of investor relations and communications Mr Ilja Graulich acknowledged the current difficulties.

“Given the current PGM (platinum group of metals) basket price weakness and uncertain global economic outlook, we have taken the measured decision to extend the Karo Platinum Project timeline out to commissioning to June 2025, with the opportunity to accelerate the timeline as markets become more favourable,” Mr Graulich said.

Despite the revised timeline, the Karo Platinum Project remains a significant undertaking, employing over 1 000 workers at its operation in Mhondoro-Ngezi.

Tharisa Capital, Mr Graulich said, had set aside a budget of over US$200 million for the project this year.

“Karo Platinum total capital is US$391 million, but we have added 10 percent to that due to our extended schedule,” he said.

“Our 2024 financial year capital spend is budgeted at US$244 million, subject to ring-fenced funding.”

Development of the mine commenced in December 2022 with an ambitious goal for rapid progress, he said.

“A rapid construction timeline was targeted, with the first ore in the mill set to be delivered by June 2024, and the first concrete was poured in June 2023. In the same month, open-pit pilot mining commenced to optimise the mining methods and produce ore to further test and refine metallurgical processing.”

Mr Graulich said they are on course to meet the new timelines.

“The Karo Platinum Project has progressed well, and the revised timeline is aligned to funding availability and provides flexibility to navigate volatile market conditions,” he continued.

“Our plan this year is to meet our newly set timelines without fail. We want to continue with construction as per the revised plan and I am happy to say that all our contractors have returned after the Christmas break and work is continuing.”

Last year, the company commenced pilot mining at its Mhondoro-Ngezi Mine.

“Aside from firming up our knowledge for open-pit mining, we have an extended programme that has allowed for technical enhancements, plant optimisation and value engineering.

“We have also increased throughput of the plant by 10 percent and additional base metal opportunities under test work.”