eBusiness Weekly
Business Writers
Mines and Mining Development Minister Winston Chitando yesterday said the land that has been allocated to Karo Resources – which intends to roll-out a $4,2 billion platinum mining project in the Mhondoro Ngezi area– is not under dispute.
This comes as there had been concerns that the mining concessions allocated to Karo Resources are not part of the 27 948 hectares compulsorily acquired by Government from Zimplats on May 24 last year.
On January 13 last year, Government issued a preliminary notice in terms of which it gave fresh notice – through a Government Gazette Extraordinary – of its intention to compulsorily acquire land measuring 27 948 hectares within Zimplats’ special mining lease area.
After the notice, Zimplats immediately lodged an objection to the proposed acquisition of the land and after that, Government served the operating subsidiary with an order of compulsory acquisition on May 24 last year.
On June 26, 2017, Government filed a court application seeking confirmation of the acquisition and Zimplats filed its response to the court application.
Although the status of case could not be established by the time of going to print, the matter is pending in the courts.
In the meantime, Zimplats continues to engage Government on the matter.
Minister Chitando yesterday tersely said: “The land we have allocated Karo is not in dispute and there is no issue.”
Zimplats head of corporate affairs Busi Chindove declined to comment on the issue yesterday.
Karo Resources is understood to have been allocated almost 23 000 hectares of platinum rich land on which to mine.
The deal is the biggest ever signed by Government since independence from Britain 1980.
Speaking at the signing ceremony in Harare yesterday, President Mnangagwa said it has taken six years to tie down the deal.
President Mnangagwa blamed bureaucracy and corruption–for delaying the start of the project.
“I am happy that this day has come,” he said, adding that “this has taken more than six years to reach this day”.
“Had we embraced their intention to invest in this country, in platinum, the year they came and I took them to the President (Mugabe), we should have been in the sixth year of the programme . . .”
President Mnangagwa exhorted Karo Resources to ensure that it does everything possible to ensure the deal becomes a success, now that they have obtained mineral concessions.
The project, which was described by Minister Chitando as historic, entails five facets which include PGMs production; a base metal refinery and precious metal refinery and a 600MW power plant.
The agreement signed between Government and Karo Resources provides for the installation of capacity to produce 14,4 million tonnes of ore and 1,4 million PGM ounces per annum.
Added Minister Chitando: “Karo Holdings will construct a base metal refinery and precious metal refinery by 2024.
“Karo Holdings have indicated their intention to incorporate the output or work with other PGM producers who do not have firm plans to establish a base metal refinery and a precious metal refinery.
“The platinum investment – being mining, processing and refining – will require 250 megawatts of power. To augment power supply, Karo Holdings will establish a power plant with a capacity of 600 megawatts.”
This will see the balance of 350MW being fed into the national grid.
The company plans to commission the power station in 2022.
It is expected that the project will directly employ 15 000 people while 75 000 others would be indirectly employed.
Karo representative Loucas Pouroulis said his company feels “privileged to be here”.
“This is in partnership with the Government of Zimbabwe and this will be a world-class, fully integrated PGM mining and refining complex. It is complete with a refinery and a power station.”
