Karo Mining Holdings has secured a five-year offtake agreement with Valterra Platinum for platinum group metals (PGM) and base-metal concentrate to be produced at its new mine in Selous, which is expected to start production in 2027.
The agreement provides Karo with a ready market for its future output as the company works towards completing the US$4.2 billion Karo Platinum project, whose commissioning was delayed by three years following a sharp decline in platinum prices between 2023 and 2024.
Under the offtake agreement, Valterra Platinum will purchase Karo’s PGM and base-metal concentrate for processing at its facilities.
“Securing a concentrate purchase agreement with a partner of Valterra’s standing and high-quality downstream processing footprint is a significant milestone for Karo Platinum, providing offtake certainty as we advance the project towards first production,” said Karo representative, Mr Phoevos Pouroulis.
Valterra operates Unki Platinum Mine and a smelter in Zimbabwe, as well as PGM operations in South Africa.
Valterra Chief Executive Officer, Craig Miller, said the agreement reflected the company’s confidence in the fundamentals of the PGM market and Karo’s mineral potential.
“The agreement reflects our confidence in the fundamentals of the PGM market and Karo’s ability to develop this project on the high-quality mineralised zone of Zimbabwe’s Great Dyke.”
He said the deal would also expand Valterra’s third-party processing portfolio while creating an opportunity for a long-term partnership with Karo.
Construction of the Karo mine began in 2022, with the project initially scheduled for completion in 2024. However, weaker platinum prices forced the company to defer commissioning, with production now expected to begin in 2027.
The offtake agreement marks an important step towards commercialising the project by securing a market for Karo’s concentrate ahead of the planned start of production.
The development also strengthens Zimbabwe’s platinum value chain, linking the new Karo operation to existing local mining and processing infrastructure.
Karo is expected to add to Zimbabwe’s platinum production base and contribute to Government’s efforts to expand mineral beneficiation, attract investment and increase the mining sector’s contribution to economic growth.
