Chrome and platinum miner Tharisa PLC (LON:THS ) has welcomed the Zimbabwe government’s decision to make part of the Karo licence a special economic zone (SEZ).
The zone is located on land covered by special mining grants issued to a subsidiary of Karo Zimbabwe, in which Tharisa has a 26.8% indirect stake with an option to increase that holding.
SEZ status means Karo Zimbabwe will benefit from reduced tax rates, duty-free importation of raw materials and equipment and exchange control rulings.
Karo Zimbabwe recently completed a shallow drilling programme on the platinum-rich property, which is situated on the country’s Great Dyke, with a resource statement expected before the end of 2019.
Phoevos Pouroulis, Tharisa’s chief executive, said SEZ status is a critical step in the development of what could become a world-class vertically integrated PGM operation that can transform the Zimbabwean PGM sector
"The SEZ status, as well as the completion of the initial resource classification, are key milestones prior to investing in the various phases that a project of this scale requires for it to succeed.”