Harare – Low-cost platinum group metals (PGMs) and chrome concentrate producer Tharisa Minerals said it remains committed to its Investment Project Framework Agreement with the Zimbabwe government despite the turbulent landscape in the country.
The agreement involves the establishment of a vertically integrated PGMs mining complex and a call option to acquire a 90 percent shareholding in illuvial chrome mining company Salene Chrome Zimbabwe on the condition of completion of the exploration programme.
Tharisa acquired a 26.8 percent shareholding in PGMs miner Karo Mining Holdings’ project, in Zimbabwe, for $4.5-million last year. Karo has been awarded a special grant over 23 903 ha on the Great Dyke of Zimbabwe.
Salene Chrome Zimbabwe was awarded three special grants covering 9 500 ha on the eastern side of the Great Dyke, which entitles the company to mine the minerals thereon, including illuvial chrome.
In an update of the Group’s operations, CEO Phoevos Pouroulis maintains that the company is fulfilling its directives according to the investment agreement, and that the political issues in the country have not prevented the company from continuing with the development plan. The area is said to contain 96-million ounces (Moz) of PGMs at an average grade of 3.2 g/t.
“This investment, as well as the company’s presence in the Bushveld Complex, in South Africa, is vital for Tharisa’s opportunities in the PGMs market. The company also remains focused on its flagship operating mine, the Tharisa mine, on the western limb of the Bushveld Complex,” he said.
He further highlighted that the challenges that the PGMs sector has had to deal with include geopolitical issues, rising costs, changes in grade and large overheads, as well as fluctuations in supply and demand.
Meanwhile, Tharisa has cut its 2019 production target, saying that problems at its processing plants during the December quarter had rocked output.
The London and JSE listed firm said that in the December quarter platinum production had dropped by 5.9 percent to 33 600 ounces, while chrome concentrate output had declined by 10 percent to 305 400 tons.
Speciality grade chrome concentrates decreased by 27.2percent to 72000 tons, from 98000 tons, in the previous quarter.
The company said the lower recoveries were as a result of processing commissioning tailings and it also blamed reduced availability of equipment, particularly in the drill and blast operations, for hampering production.
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