Oscar J Jeke
Zim Now Reporter
Karo Mining has announced a delay in the commissioning of its US$391 million platinum mine, now expected to begin production in the second half of 2026.
The postponement is attributed to a global decline in Platinum Group Metal prices, compelling the company to reassess its construction timeline and funding strategies.
Originally set for July 2024, the mine's commissioning was previously adjusted to June 2025. Now, Karo Mining has revised its timeline further, citing ongoing challenges in securing financing amid a sluggish PGM market.
The mine, located on the Great Dyke in Selous, began construction in December 2022, with first ore in the mill now targeted for the second half of 2026.
In response to market conditions, Karo has broken down its project work streams into smaller commitments to better align with available funding. While positive negotiations with financiers continue, the company is still reviewing term sheets from potential backers.
Once operational, the mine is expected to produce up to 194,000 ounces of PGMs annually, positioning it as Zimbabwe's third-largest platinum mine, behind Zimplats and Unki. This would increase the country’s platinum output by 20%.
The broader industry has also been affected by the decline in metal prices. Zimplats has slowed down on some projects within its US$1.8 billion expansion plan, while Mimosa has scrapped a US$100 million project.
Zimplats CEO, Alex Mhembere, expressed cautious optimism, noting that platinum prices may have bottomed out and could stabilize soon, although they remain at levels that lack enthusiasm within the sector.
Key factors contributing to the price decline include reduced industrial activity in major economies like China and falling scrap prices in key markets such as Turkey and Europe.
While Fitch Ratings projects a potential recovery in steel prices by 2025-2026, the outlook for platinum demand remains uncertain in the short term.
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