Tharisa is mulling over the possibility of investing in a $4.2 billion platinum project in Zimbabwe. Through this possible investment it would join Karo Resources in building a mine on the Great Dyke.
The investment in the mine could actually be lower than stated with the investment spread over a period of up to years.
It is estimated the mine could produce up 1.4 Mt a year of platinum by 2023.
Karo is also currently in a joint venture with the Zimbabwean government.
Tharisa is looking to diversify its businesses and believes Zimbabwe mining is more attractive as the country opens its doors to international companies looking to invest in the local mining industry.
The President of Zimbabwe, Emmerson Mnangagwa, is proving that his determination to drive investment into Zimbabwe will not override smart judgements and decision making having announced he will drop the requirement for mining companies to list on the local stock exchange.
Zimbabwe is currently reviewing its Mining Act and this requirement, which Emmerson initially indicated he would incorporate, has been dropped entirely.
The country’s Chamber of Mines, has indicated its concern over local listings noting that the exchange might not be deep and liquid enough for companies to raise capital.
Zimbabwe will finalise amendments to its mines act in the next few months and is determined to boost investment into the country as a result.
Mining is one of the most crucial industries in Zimbabwe but could be so much bigger than it is.
According to high level individuals in government, all minerals-extraction operations excluding platinum and diamonds could be 100% foreign owned.
The platinum and diamond sectors must have 51% local ownership, but this can also be altered on a case by case scenario.
Also, any company investing US$100 million or more in the mineral sector could negotiate tax rates, royalties and ownership structures directly with the government.