Zim will never be the same again

(Salutations)Ladies and gentlemen, today is a historic day in the history of the Mining Industry in Zimbabwe.  Historic in two ways, firstly what has been signed today is the largest investment structure in the history of the Mining Industry in Zimbabwe.  Historic as well from the fact that the landscape of the Zimbabwean Mining Industry will never be the same as the provisions of this agreement are implemented and as other investment initiatives unfold, a number of which will become public over the next few weeks

The agreement signed today has five facets:-

1. PGMs production – the agreement provides for the installation of capacity to produce 14.4 million tonnes of ore and 1,4 million PGM ounces per annum as follows:-
2. a) Commissioning of first portal by 2020 to produce 3,6 million tonnes and 350 000 PGM ounces per annum.
3. b) Commissioning of second portal by 2021 to produce 3.6 million tonnes and 350 000 PGM ounces per annum.
4. c) Commissioning of third portal by 2022 to produce 3.6 million tonnes and 350 000 PGM ounces per annum.
5. d) Commissioning of fourth portal by 2023 to produce 3.6 million tonnes and 350 000 PGM ounces per annum.

Based on current production capacity, this will make Karo Resources by 2023 to be the largest PGM producer in the country.

2. Base Metal and Precious Metal Refineries.
3. a) Karo Resources will construct a Base Metal Refinery and Precious Metal Refinery by 2024
4. b) Karo Resources have indicated their intention to incorporate the output or work with other PGM Producers who do not have firm plans to establish a Base Metal Refinery and a Precious Metal Refinery.
5. Power Supply
6. a) The platinum investment – being mining, processing and refining will require 250 megawatts of power.
7. b) To augment power supply, Karo Resources will establish a power plant with a capacity of 600 megawatts. This will effectively add an additional 350 megawatts of power into the grid.
8. c) It is planned to commission the power station in 2022.
9. Coal Mining

To ensure that there is adequate feed for the power station, Karo Resources will invest in a coal mining operation to have the required throughout by 2022 when the power station is due for commissioning.

5. Chrome Mining
6. a) The peripheral of the Mining lease area being granted to Karo Resources as well as the adjoining area has alluvial chrome deposits.
7. b) Karo Resources in its master plan, has earmarked to establish infrastructure on a significant portion of this area.
8. c) As a result, Karo Resources will undertake the mining of these alluvial deposits which will be value added. The mining of these alluvial deposit will commence by October 2018 to ensure that the company retains flexibility and capacity to construct the necessary infrastructure as it embarks on timelines indicated earlier. On full implementation of the above 5 investment structures, Karo Resources will employ 15 000 people directly and an estimated 75 000 people indirectly.

Whilst it is not part of this agreement, Karo Resources has indicated its willingness to work with Government to explore further the value addition of some of the PGMs produced from the Precious Metal Refinery.  A committee to pursue this is being set up and initial discussions with potential value addition partners is scheduled for April 2018.

This agreement is unique and exciting as it covers five facets as indicated earlier.  Government through the Ministry of Mines has to play an effective facilitation role to ensure that all the timelines set are achieved smoothly. To this extend, Government is setting up by 1st May, a full time Secretariat for Investment facilitation.

This will be a Section in the Ministry of Mines and Mining Development, dedicated to facilitate the execution of this agreement and other agreements to be unveiled in the next few weeks which however will not necessarily be on the same scale as the Karo Resources Investment.  An implementation committee will be set up which will also include other Government Departments.

As I conclude, I would like to thank His Excellency, the President of Zimbabwe, not only for his guidance and support in the negotiations leading to this agreement, but also in the provision of the necessary support mechanism to ensure its smooth implementation.  I also would like to thank all those who have given their input in one way or the other in the process leading up to this event, including Karo Resources.  Once again, this is not an end, but a beginning, not only in the execution of this agreement, but in a process to ensure that the Mining Industry plays a key role in the turnaround of our economy…

Speech delivered by Minister of Mines and Mining Development, Mr Winston Chitando at the signing ceremony of the 4,2 billion dollar Karo Resources Investment Project