Zimbabwe signs agreement for $4.2bn platinum project

26 March 2018 (Last Updated March 26th, 2018 11:51)

Cyprus-based Karo Resources has reached an agreement with the Government of Zimbabwe to invest $4.2bn towards the development of a platinum mine and refinery in Zimbabwe.

Cyprus-based Karo Resources has reached an agreement with the Government of Zimbabwe to invest $4.2bn towards the development of a platinum mine and refinery in Zimbabwe.

The deal represents the first major investment in the country since President Emmerson Mnangagwa assumed office in November last year.

The project is set to begin production in 2020, targeting an output of 1.4 million ounces (Moz) per a year of platinum-group metals at full-scale operations.

In addition, the project will also include a coal mine, along with a power station to produce electricity for the smelter.

"The project is set to begin production in 2020, targeting an output of 1.4 million ounces (Moz) per a year of platinum-group metals at full-scale operations."

The development will be situated in the Mhondoro-Ngezi platinum belt, west of Harare.

It is expected to create 15,000 jobs at peak operation, according to Reuters.

Zimbabwe president Emmerson Mnangagwa was quoted by the news agency as saying: “Zimbabwe is open for business and whoever stands in the way, hurting business in this country, will fall.

“It is not business as usual anymore, things have to change.”

The proposal to commence the project was originally made six years ago, though the initiative was subsequently sidelined due to issues relating to government bureaucracy.

Zimbabwe Mines Minister Winston Chitando was quoted by the news agency as saying: “This is the largest investment structure in the country’s mining industry in Zimbabwe.

“The landscape of Zimbabwe’s mining industry will never be the same.”

The country is currently noted to possess the second largest platinum deposits in the world.