Zimbabwe’s Special Economic Zones Authority (Zimseza) has declared a portion of Tharisa’s PGM subsidiary Karo Zimbabwe’s Selous mining licence measuring 50 667 hectares as a special economic zone (SEZ).
The zone is located on certain pieces of land covered by special mining grants issued to a subsidiary of Karo Zimbabwe – in which Tharisa is a 26.8% indirect holder and has an option to increase its interest.
With the declaration of SEZ status, Karo Zimbabwe and its licensed subsidiaries will be entitled to several fiscal incentives that further enhance the economics of the project including reduced tax rates, duty free importation of raw materials and equipment and exchange control rulings.
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Karo Zimbabwe has recently completed a 238 borehole, 32.4 km PGM drilling programme on the property situated on the Great Dyke of Zimbabwe, with the drilling focused on the western boundary of the license to average depths of 50 m to 150 m. Karo Zimbabwe is on track to deliver a resource statement before the end of the 2019 calendar year.
“Zimseza’s award of the SEZ status to Karo’s license in Zimbabwe is a critical step in the development of what could become a world-class vertically integrated PGM operation. The Karo mine could transform the Zimbabwean PGM sector, bringing significant economic benefits to all stakeholders and building a long-term sustainable mining industry,” saysTharisa CEO Phoevos Pouroulis.
“The SEZ status, as well as the completion of the initial resource classification, are key milestones prior to investing in the various phases that a project of this scale requires for it to succeed. We look forward to working closely with Zimseza and the government of Zimbabwe, together with the local, regional and national stakeholders, as well as our financial partners, to bringing this project to fruition.”