KARO RESOURCES yesterday said it will kick off activities
on its $4,2 billion platinum investment project in Mhondoro-Ngezi in the next
few weeks by carrying out geophysics, and flying over the area as part of the
resource exploration and quantification programme.
The mining giant yesterday introduced to President
Mnangagwa their financiers, Africa Finance Corporation (AFC), who said they
were ready to inject $2 billion into the platinum mining project that is set to
create at least 90 000 jobs for locals. The mining firm’s representatives said
the project was well on course and simply following its gestation period that
comes with projects of that magnitude.
The high-powered delegation from Karo Resources mining
group, led by chairman Mr Loucas Pouroulis, paid a courtesy call on President
Mnangagwa at his Munhumutapa offices in Harare in the company of the AFC
officials, where they revealed the details on the project.
AFC president and chief executive Mr Samaila Zubairu told a
news conference after the meeting that his organisation stood ready to support
the project with an initial capital injection of $2 billion.
Mr Zubairu explained that what happens with such projects
was that they could then generate revenue from the initial capital investment
to grow, but in the event of further capital being required from outside the
project, AFC will still mobilise.
“We are here to introduce AFC to the President of Zimbabwe,
to express our support to the Government of Zimbabwe on the industrial plan and
infrastructure plan and to commit to them that we are working with Karo
Resources to execute this project,” said Mr Zubairu.
“We are committed to supporting the project fully. The
project is in phases – the first phase is $2 billion. The way projects work is
that you start from a particular point and then you build on as you go.
“Typically, sometimes when you start with maybe $400
million you can get capital and retain it from the business and continue. You
start the project, develop some revenue from the project, re-invest it and get
all the partners to join you.
Mr Zubairu said they were going to work with Karo Resources
to start the project.
“As the project continues to develop, we will continue to
re-invest in the project and mobilise additional capital to invest in the
project,” he said.
President Mnangagwa, who in March directed the Ministry of
Mines and Mining Development to see to it that Karo Resources was kept to its
timelines, told the same news conference that the project was on course and
dismissed media reports to the contrary.
“When I read what you (journalists) wrote, then I got
worried,” he said. “Now, I am so clear that I must not go by what you write. I
must go by what the people on the ground actually are doing. So, I now know
that the project is on course, the media is not on course.”
Karo Resources country manager Dr Josephat Zimba said his
company’s wish was to put together a world class project that will not have
negative impact on future generations and this entails following Environmental
Management Agency (EMA) regulations to the letter.
He said the firm would in the next few weeks start
geophysics that will see them flying over the area as part of the resource
exploration and quantification programme.
“What we came to do today is to appraise the President of
the Republic of our country on the progress of the project,” said Dr Zimba.
“Our group again reaffirmed its commitment to executing this world class
project here in Zimbabwe and we are seized with doing the EMA approvals and I
must highlight that EMA approvals are a regulatory requirement.
“In the next weeks ahead, you will start to see, we will be
doing geophysics, we will be flying over the area as part of the resource
exploration programme and quantification programme.”
In its first phase, the deal is envisaged to see the
production of 3,6 million tonnes of ore and 350 000 ounces of platinum group of
metals in 2020, which will improve to 14,4 million tonnes of ore and 1,4
million ounces of platinum group of metals in 2023.
A base metal refinery and precious metal refinery will also
be constructed as part of the deal that will see 15 000 people being employed
directly and a further 75 000 indirectly. Herald
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