Karo Mining now expects to start production at its new US$391 million platinum mine in the second half of 2026, further pushing back construction deadlines due to weak metal prices.
Construction of the mine, on the Great Dyke in Selous, started in December 2022 and commissioning was originally expected in July 2024. Last year, Karo moved this date to June 2025. First production is now expected next year, as platinum prices remain sluggish and talks continue over funding.
“First ore in mill is now planned for the second half of 2026 whilst the project workstreams have been divided into smaller commitments to ensure continued development aligned with funding availability,” Karo says. “The PGMs’ price environment necessitated a review of the commissioning timeline. Negotiations for funding have been positive and now at an advanced stage with the group in possession of term sheets received from financiers which it is currently assessing whilst smaller work packages on the project are being completed.”
When complete, Karo will produce up to 194,000 ounces of PGMs per year. This would make it Zimbabwe’s third largest platinum mine after Zimplats and Unki and increase the country’s platinum output by 20%.
But Zimbabwe will have to wait a bit longer for the project, as the fall of PGMs prices delays projects across the industry. Zimplats has slowed down on some of its projects under a US$1.8 billion expansion, and Mimosa abandoned a US$100 million plan to develop a new mining area.
Alex Mhembere, CEO of Zimplats, said late last year that he believed platinum prices have hit a bottom and are due for a stability.
“We can say that the sector has survived. We have implemented stringent cost controls. At the moment, we are now witnessing a floor at the bottom in terms of prices. We are not excited, but they (prices) are not going down any more,” said Mhembere.
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