$4.2 billion is to be spent on a platinum project in Zimbabwe marking the first significant investment in the country since Robert Mugabe’s ousting in November 2017. Karo Resources’ investment is in fact the largest to date in Zimbabwe’s mining industry according to the country’s Minister of Mines Winston Chitando.
This follows the President of Zimbabwe, Emmerson Mnangagwa, declaring “we are open for business” as he seeks to revive the economy and attract investment.
It is envisaged that Karo Resources’ platinum project will begin in 2020 and aim to produce 1.4 million ounces a year of platinum-group metals.
The volume of production could make it the top producer in Zimbabwe by 2023. The country has the second-largest PGM reserves after South Africa.
The development of the project will also include a 600 MW power plant and coal-mining operations to feed it.
Global platinum prices have fallen since 2011 amid uncertainty about demand for the metal that is used to curb pollution from diesel cars.
Zimbabwe has a law requiring that platinum and diamond mining companies be at least 51% locally owned.