Tharisa Mining completes takeover of Karo Resources

By Owen Mandovha

THE endorsement of Zimbabwe’s improving economic environment by foreign investors continues, with South African based platinum group acquiring a major stake in Karo Resources, a move described as key in attaining the nation’s economic vision.

The takeover of Karo Resources by platinum mining giant, Tharisa Mining Group has not only been described as a huge endorsement of Zimbabwe’s ever improving economic environment, but will also be a huge step in attaining the US$12 billion mining industry by next year.

The London and Johannesburg Securities Exchange listed platinum explorer announced that it has acquired a controlling stake in Karo Resources to the tune of US$27 million, which will double Tharisa’s platinum output once the company completes building the mine within the next 24 months.

We are glad as Tharisa to become part of Karo Resources as Zimbabwe’s low cost producing country in the world hence this is an asset we expect to boost our operations. The asset also consists of other minerals such as nickel and copper which makes it more attractive,” said the Executive Chairperson of Tharisa Mining, Loucas Pouroulis.

President of the National Business Council of Zimbabwe, Mr Langton Mabhanga insists that the quantum of foreign investments in the mining sector witnessed in the last four years under the Second Republic is phenomenal, thanks to government’s investor friendly policies.

This is really magnificent and President Emmerson Mnangagwa has done wonders in a very short space of time. The development of new mines in the last four years has been unprecedented. Karo Resources will be complete in the next 24 months and imagine how this will change the economy for the benefit of Zimbabweans, he said.”

Works to build the mine have already commenced and US$25 million has so far been committed and once complete, the mine will produce 150 000 ounces of platinum annually.

Apart from an expected rise in foreign currency receipts emanating from increased platinum group of minerals exports, government’s 15 percent stake in Karo Resources implies a direct boost to treasury’s coffers.