Karo Platinum, 85%-owned by Tharisa (LSE:THS), has signed a Special Mining Lease Agreement with the Government of Zimbabwe, granting long-term security of tenure over the project.
The signing ceremony took place at State House in Harare on 24 August, attended by President Emmerson Mnangagwa, and the agreement was concluded by Zimbabwe's mines minister Dr Eng. Polite Kambamura and finance minister Mthuli Ncube.
The lease, granted under the Mines and Minerals Act, covers a 23,903-hectare mining area for an initial term of 25 years and applies the fiscal and operational framework reserved for large-scale projects of national significance.
The remaining 15% of Karo Platinum is held by the Zimbabwean government via Generation Minerals on an unencumbered free carry.
Karo Platinum ranks among the largest undeveloped platinum group metals (PGM) assets on the Great Dyke, with an open pit mineral reserve of 2.1 million ounces on a 4E basis and a mineral resource of 11.2 million ounces, supporting a mine life exceeding 50 years including potential underground mining.
Tharisa has invested more than $240 million in the project to date.
Phase 1 is designed to employ over 1,000 people while producing 226,000 ounces of PGMs annually, and remains central to Tharisa's 2030 strategy, according to chief executive Phoevos Pouroulis.
"The signing of this Special Mining Lease Agreement is a defining milestone for Karo Platinum and for Tharisa's growth strategy," Pouroulis said.
News Intelligence what this means for the company
Karo Platinum, Tharisa's 85%-owned Zimbabwe subsidiary, has secured a 25-year Special Mining Lease from the Zimbabwean government, locking in long-term tenure and fiscal terms for the Great Dyke PGM project. The lease—signed at State House with President Mnangagwa present—removes a critical permitting risk and clears the path for Phase 1 development, which is designed to produce 226,000 ounces of PGMs annually and employ over 1,000 people. Tharisa has already invested more than $240 million in the project, and this milestone validates that capital and anchors the company's 2030 growth strategy.
The lease agreement de-risks Karo Platinum's development timeline and secures 50+ years of mine life, materially strengthening Tharisa's growth narrative beyond its current South African operations. However, execution risk remains: Phase 1 still depends on mining contractor ramp-up and plant commissioning, and Tharisa's net cash position of $10.7 million leaves limited financial cushion for project delays or cost overruns.
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