Tharisa delays Zimbabwe platinum mine, citing weak prices and uncertain economy
17/10/2023 08:41
HARARE, Oct 17 (Reuters) - Tharisa Plc THST.L THAJ.J
will delay commissioning its Karo mine in Zimbabwe by up to a
year to June 2025 due to current weak platinum group metal (PGM)
prices and an uncertain global economic outlook, the miner said
on Tuesday.
Tharisa is building the 194,000 ounce per year Karo PGM mine
at a cost of $391 million on Zimbabwe's Great Dyke, about 100 km
(62 miles) south-west of the capital Harare. The mine, which is
close to Impala Platinum's IMPJ.J Zimplats ZIM.AX
operations, was due to be commissioned by July 2024.
"Given the current PGM basket price weakness and uncertain
global economic outlook, we have taken the measured decision to
extend the Karo Platinum timeline out to commissioning by June
2025, with the opportunity to accelerate the timeline as markets
become more favourable," South Africa-based Tharisa said.
The prices of PGMs, mainly used to make catalytic converters
which help control emissions in vehicle engines, have declined
rapidly over the past year.
Tharisa realised an average PGM basket price of $1,893 per
ounce in the year ended Sept.30, 26% lower than the average
price of $2,564 per ounce it received during the same period in
2022.
PGM major Sibanye Stillwater's SSWJ.J CEO Neal Froneman
has warned of "significant restructuring" which could result in
shaft closures and job losses in the platinum industry due to
the current low metal prices.
($1 = 1.8536 marka)
(Reporting by Nelson Banya, Editing by Louise Heavens)
((Nelson.Banya@thomsonreuters.com;))