Zimbabwe signs 4.2 bln USD platinum project with Cyprus-based investor

HARARE, March 22 (Xinhua) -- The Zimbabwe government on Thursday signed a 4.2 billion U.S. dollars platinum mining project with Cyprus-based Karo Resources, the largest investment ever in Zimbabwe's mining history.

Zimbabwe's mines minister Winston Chitando and Karo Resources representative Joucas Pouroulis signed the agreement in the presence of President Emmerson Mnangagwa and other senior government officials.

Chitando said the project that will be based in Mhondoro-Ngezi, Mashonaland West Province, will produce 1.4 million ounces of platinum group metals (PGM) annually by 2023.

He explained that the investor will operate four portals of the PGM, with the first portal that will produce 3.6 million tonnes of ore and 350,000 ounces of PGM per annum set for commissioning by 2020.

The second, third and fourth portals producing the same amount of ore and ounces are scheduled for commissioning by 2021, 2022 and 2023.

"Based on current production capacity, this will make Karo Resources by 2023 to be the largest PGM producer in the country," Chitando said.

As part of the investment project, Karo Resources will construct a base metal refinery and precious metal refinery and a 600 megawatts power plant.

The mining project will consume 250 MW while the remainder will be offloaded onto the national grid.

To ensure adequate feed for the power station, the investor will invest in a coal mining operation that will have the required throughput by 2022 when the power station is due for commissioning.

Karo Resources will also undertake mining of chrome alluvial deposits on the periphery of its platinum concession beginning October this year, Chitando said, adding the investor will add value to the chrome produced.

He said the project was in compliance with the country's indigenization law which limits foreign shareholding in platinum and diamond mining to 49 percent.

It was also the largest investment structure in the history of mining industry in Zimbabwe.

"The landscape of Zimbabwean mining industry will never be the same as the provisions of this agreement are implemented," Chitando said.

Karo Resources representative Joucas Pouroulis said their company was honored to be setting up a world class, fully integrated PGM mining project in Zimbabwe.

"We believe we can adhere to the timeline of five years. When all this is finished, the project potentially, will grow the Gross Domestic Product of Zimbabwe by at least 20 percent," Pouroulis said.

President Mnangagwa expressed joy that the project had finally come to fruition after six years of negotiations.

He said the project had taken long to conclude due to bureaucracy and corruption in former president Robert Mugabe's government.

"I am happy that this day has come. It has taken us more than six years to reach this day. The ball is not anymore in our court, it is now in your court," Mnangagwa said. Enditem