Karo Mining Holdings
Tharisa has acquired a 26.8% shareholding in Karo Mining Holdings (Karo Holdings), giving it access to a tier one PGM and base metal resource situated on the Great Dyke in Zimbabwe. The Great Dyke of Zimbabwe contains the world’s largest known PGM deposits outside of South Africa.
Karo Holdings and the Government of Zimbabwe entered into an investment agreement on 22 March 2018 under the terms of which Karo Holdings has undertaken to establish an integrated mining and refining complex that that could generate up to 15 000 direct jobs across the value chain.
Tharisa’s acquisition of the stake in Karo Holdings is at a more than an 80% discount to an independent fair and reasonable valuation and provides the Group with the opportunity to increase its investment in the project through discounted farm-in options at the project level.
The first of the projects Karo Platinum, an indirect 50% held subsidiary of Karo Holdings, has been awarded the PGM mining rights under a special grant covering an area of 23 903 hectares situated on the Great Dyke in the Mashonaland West District of Zimbabwe. The remaining 50% shareholding in Karo Platinum will be held by an investment company wholly owned by the government of Zimbabwe.
Through its shareholding in Karo Holdings, Tharisa has an option to participate in the other downstream projects through discounted farm-in arrangements at a later stage. The planned integrated mining and refining complex will encompass platinum mining, precious metals and base metals refining and the establishment of a 300 MW solar power plant.
It is intended that Karo Holdings will apply for National Project Status and for the projects to be contained within a Special Economic Zone, which will provide the projects with enhanced economics through concessions granted by the Zimbabwe Government.