THARISA Plc has committed US$27,7 million in capital expenditure to its local subsidiary, Karo Mining Holdings (KMH), as of March 31, 2026, to advance the Karo Platinum Project (KPP) in Zimbabwe, with open-pit waste stripping and infrastructure development already underway.
The fresh capital injection comes as the company accelerates construction and mine development activities at the platinum project, which is regarded as one of Zimbabwe’s largest planned mining investments. Tharisa says the project remains strategically important despite ongoing negotiations over fiscal arrangements and efforts to secure the remaining debt funding required for completion.
Tharisa holds a 78,81% stake in KMH, which in turn owns 85% of the KPP, while the Zimbabwean government’s special purpose vehicle, Generation Minerals, holds the remaining 15%.
During the group’s half-year period ended March 31, 2026, the Cyprus-based integrated resources group reported that it had invested a cumulative US$241 million into the project, up from US$185 million in the prior comparative period.
At the KPP, 26 kilometres of underground drilling confirmed a mine life potential exceeding 50 years, while mobilisation remains on track and open-pit waste stripping is already underway.
“Total cash capital expenditure for the period amounted to US$103,5 million (2025: US$52,5 million). Of the total capital expenditure, US$15 million (2025: US$11,3 million) pertained to additions to the mining fleet and US$88,5 million (2025: US$35 million) related to other mining assets,” Tharisa said in its half-year report for the period ended March 31, 2026.
“Capital expenditure on the underground mine development totalled US$16,3 million, with the capital expenditure for the Karo Platinum Project totalling US$21,4 million. Total capital commitments at 31 March 2026 totalled US$120,2 million (2025: US$91,5 million), inclusive of (Karo Platinum: US$27,7 million (2025: US$55,2 million)).”
The company said KMH had made substantial progress in developing the KPP during the review period.
“Construction activities remain on track, with continuous capital investment demonstrating the unwavering commitment to the project and its value to Tharisa,” Tharisa said.
“These capital investments have enabled steady advancement in infrastructure, earthworks, continued plant development, and mining contractor mobilisation and topsoil removal — laying a solid foundation for future operations.”
However, Tharisa said finalising fiscal arrangements with the Zimbabwean government remains a critical focus area.
“The critical focus areas remain the finalisation of the fiscal arrangements with the government of Zimbabwe and the completion of the project’s comprehensive debt funding package,” Tharisa said.
“Agreement has been reached with the Government on the substantive fiscal arrangements, and these are being finalised through the respective ministries. Our financing team has made significant headway in structuring and negotiating facilities to achieve project completion.”
It added: “We remain committed to transparent capital allocation and prudent financial management.”
Tharisa said the progress achieved to date underscored the dedication and expertise across the KMH team, positioning the group for the next phase of growth.
“The group remains committed to the development of the Karo Platinum Project, having invested a total of US$241 million. The funding required for project completion — measured as first ore in mill — is approximately US$300 million,” Tharisa said.
“The group continues to fund the project on a disciplined basis pending the finalisation of the required funding package and fiscal arrangements with the government of Zimbabwe. The asset is a tier one asset; however, it is in a jurisdiction that, while ‘open for business,’ lacks fiscal policy stability, thereby limiting funding options.”
KMH’s mining lease is also being converted into a 25-year Special Mining Lease, which will grant the KPP fiscal incentives, including a reduced corporate tax rate of 15%. – (Newsday)
