Tharisa has secured a five-year concentrate purchase agreement with a subsidiary of Valterra Platinum for platinum group metals (PGM) and base metal concentrate from its Karo Platinum Project in Zimbabwe.
Karo Platinum Private Limited, which is 85% owned by Karo Mining Holdings and 15% by the Zimbabwean government, has signed the binding purchase of concentrate term sheet with Valterra.
Tharisa owns 78.81% of Karo Mining Holdings.
The agreement provides offtake certainty as Tharisa advances Karo towards first production, following the recent signing of a Special Mining Lease Agreement with the Zimbabwean government.
Karo is one of the largest undeveloped PGM projects on Zimbabwe's 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.
The project is expected to support a mine life of more than 50 years, including potential underground mining.
Tharisa CEO Phoevos Pouroulis said: “Securing a concentrate purchase agreement with a partner of Valterra's standing and high-quality downstream processing footprint is a significant milestone for Karo Platinum, providing offtake certainty as we advance the project towards first production. This agreement underpins the bankability of Karo, reflects the quality of the asset and reinforces the partnership-led approach that has been central to Tharisa's development since inception.
We view Valterra as an ideal partner for the next phase of our growth and look forward to deepening our cooperation as Karo progresses.”
View from Vox
The agreement gives Tharisa an important piece of the Karo development puzzle, providing a committed downstream partner as the project moves towards construction and first production. Securing offtake with an established PGM processor should also strengthen the project's financing proposition.