Karo Resources defining quantum of platinum resources
THE historic Karo Resources’ $4,2 billion platinum investment deal is now at resource definition stage with the investor expected to give an ‘on the ground progress update’ this month, a Cabinet Minister has said.
Resource definition involves projecting the quantum of the resources.
The progress check is in line with President Mnangagwa’s call to have investment deals being followed through and being put to task over adhering to set progress timelines.
Presenting on the state of the mining industry and growth prospects to the Parliamentary Portfolio Committee on Mines and Energy, chaired by Norton Legislator Themba Mliswa last week, Mines and Mining Development Minister Winston Chitando said the project is progressing well.
Minister Chitando told the committee that the geological plans done by the investor point to four mining pits at full production but for now, efforts are being expended on just one, which is expected to go into production in 2020.
Based on current production capacity, the Karo Resources investment is set to make the firm the largest platinum group metals producer in the country by 2023, surpassing the existing producers Zimplats, Mimosa and Unki.
The investment is also expected to see the creation of 15 000 direct and 75 000 indirect jobs.
However, Minister Chitando said the firm ran into problems in obtaining an Environmental Impact Assessment (EIA) certificate as indications on the ground are that more than 200 families around the Mhondoro-Ngezi Mine area will need to be relocated.
“First and foremost, there will be an on the ground update on the Karo Resources investment deal in November,” said Minister Chitando.
“You will have Karo Resources presenting a field show of sorts . . . there will be an update of what is happening.
“But right now one of the issues causing a slight delay in kick-starting the whole project, is the EIA. Indications are that more than 200 families need to be relocated.
“So the conclusion of the EIA, taking this into account, has taken a bit of time but that is being concluded and in the interim, the resource definition process is underway,” he said.
The investor has already preceded any mining or exploratory work by undertaking a corporate social responsibility project that has seen the miner helping a local school, Chirundazi Primary School, by installing piped water from a nearby borehole.
Speaking at the signing of the deal in March, President Mnangagwa said the ball is now in Karo Resources’ court to see to it that what was promised is delivered. He also implored the Ministry of Mines and Mining Development to make sure it plays its role.
“Now that this (signing of the deal) has happened, we have been able to give you the concessions,” said the President in March.
“I have seen the timelines, the ball is no longer in our court, it’s now in your court.
“You have been complaining that you want to put your money in this and in fact, at one time you raised this and took it away because we could not move . . . but now I am saying Zimbabwe is now open for business and whoever stands in the way of making business in this country will fall.
“So, the Minister of Mines, they have given you their timelines, keep them to their timelines and on our part, wherever Zimbabwe has an obligation, we must fulfil our obligation and if you fail, come to me and say your ministers are dragging their feet and I will make sure I cut their feet and make them walk, so it is not business as usual anymore,” President Mnangagwa said.
The mine, to be located in the Mhondoro-Ngezi area, will also see the establishment of a 600MW thermal power station in Matabeleland North as well as chrome mining with the first phase of production expected to have an annual output of 3,6 million tonnes of ore and 350 000 ounces of platinum group of metals.