Karo Platinum Signs 25-Year Special Mining Lease in Zimbabwe

en.Wedoany.com Reported - On August 24, Karo Platinum signed a Special Mining Lease agreement with the Government of Zimbabwe, covering approximately 23,900 hectares of the Karo Platinum Platinum Group Metals (PGM) project area, with an initial term of 25 years. The agreement was signed under Zimbabwe's Mines and Minerals Act and establishes the fiscal and operational framework applicable to the project. The signing ceremony was held in Harare.

Karo Platinum is 85% owned by Karo Mining Holdings, with the Government of Zimbabwe holding the remaining 15% interest through Generation Minerals. The project is located on the Great Dyke in Zimbabwe and is currently in the construction phase. As of the first half of this year, cumulative investment in the project has exceeded US$240 million. Mine stripping has commenced, and works such as civil construction and equipment installation at the processing plant continue to progress.

The project's open-pit mine hosts mineral reserves of 2.1 million ounces of 4E and mineral resources of 11.2 million ounces of 4E; combined with potential underground mining resources, the project's mine life could exceed 50 years. Phase 1 is designed to produce approximately 226,000 ounces of PGMs annually, with plans to employ over 1,000 staff.

On August 27, Karo Platinum further signed a binding concentrate offtake term sheet with a subsidiary of Valterra Platinum, covering PGM and base metal concentrates produced from the Karo project, with an initial term of 5 years. This agreement follows closely after the signing of the Special Mining Lease, and the Karo project has not yet reached first commercial production.