Siphakeme .Mnindwa
Nqobile Bhebhe, nqobile.bhebhe@chronicle.co.zw
KARO Mining Holdings is in the advanced stages of securing US$226 million in debt funding to finalise the construction of its ambitious mining project in Zimbabwe.
Additionally, the company expects to raise a further US$31,2 million from an equity partner, signalling significant progress in its funding strategy.
The company reported positive developments in its negotiations, with term sheets from potential financiers currently under evaluation.
Karo Mining Holdings is majority-owned by Tharisa plc, an integrated producer of platinum group metals (PGMs) and chrome, listed on both the London Stock Exchange (LSE) and Johannesburg Stock Exchange (JSE). Tharisa’s flagship operation, the Tharisa Mine, is located in South Africa’s North West Province.
The Zimbabwean project encompasses value engineering, mining operations and process optimisation, undertaken concurrently to enhance efficiency and maximise resource utilisation.
In its financial results for the year ended September 30, 2024, Karo Mining Holdings announced that Tharisa plc remains committed to funding the initial US$135 million of the project budget through equity and equity-like instruments.
The parent company also provides guarantees to facilitate the acquisition of additional debt financing.
“As at the reporting date, US$107 million had been received from Tharisa plc for utilisation on the ongoing construction work. Furthermore, management is at an advanced stage to secure debt funding amounting to US$225 million for the completion of the project construction and the balance of US$31,2million through an equity partner,” the company said in its statement.
Karo Mining Holdings noted that the US$65 million equity line availed in the prior year had been fully utilised for the project. A subsequent US$70 million equity line was made available and is being drawn down to meet working capital needs.
The directors have implemented rigorous financial oversight, reviewing expenditures, investments and commitments to align project milestones with available funding.
The statement added that scenarios have been prepared to match project commitments with funding availability, ensuring financial stability for the foreseeable future.
The company emphasised its ability to meet obligations as they fall due, maintaining a strong financial position that supports its going-concern status.
Initially targeted for commissioning in 2024, the Zimbabwean project has faced delays due to a significant downturn in the PGM market. The timeline was first adjusted to June 2025 and has now been extended to the second half of 2026.
The company explained that the revised timeline was necessitated by prevailing PGM price conditions, prompting a strategic review. The first ore in mill (FOIM) is now planned for the latter half of 2026.
To manage these challenges, Karo Mining Holdings has divided the project into smaller, manageable work streams to align development with funding availability.
“The PGMs’ price environment necessitated a review of the commissioning timeline,” the company stated.
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