eBusiness Weekly
Fradreck Gorwe
The Zimbabwe Special Economic Zones Authority (ZIMSEZA) has declared a portion of Selous measuring 50 667 hectares as a special economic zone (SEZ) in a gesture believed to be “a key milestone” prior to Karo Zimbabwe Holdings’ investments and growth potential.
Selous is part of the Great Dyke in Mashonaland west district of Zimbabwe, famous for PGM reserves.
Karo Zimbabwe Holdings is a platinum mining concern currently engrossed with the task of establishing a large-scale vertically integrated Platinum Group Metals (PGMs) mining complex in the Great Dyke. It envisions a complete mining value chain through to precious metal refining.
The project will be lubricated by a partnership with the Government under the Investment Project Framework Agreement that was signed between the parties on March 22, 2018.
The SEZ status conferment was communicated by the company’s major shareholder, a chrome and platinum group metal company by the name Tharisa.
The company which holds 26,8 percent in Karo incorporates exploration, mining, processing, and the beneficiation, marketing, sales and logistics of PGMs and chrome concentrates.
Awarding of the SEZ status to a piece of land covered by Karo’s special mining grants will potentially help bring about Tharisa’s annual production target of 200 000 ounces (koz) of PGMs and 2 million tonnes of chrome by 2020. Karo itself is on track to deliver a resource statement before the end of the 2019 calendar year.
The new status will accord the company an opportunity to benefit from incentives meant specifically for such economic zones. In fact ZIMSEZA itself as a statutory body was formed by the Government of Zimbabwe to attract foreign investment into the country via incentives relating to capital investment and taxation through the formation of Special Economic Zones.
“With the declaration of SEZ status, Karo Zimbabwe and its licensed subsidiaries will be entitled to several fiscal incentives that further enhance the economics of the project including reduced tax rates, duty free importation of raw materials and equipment and exchange control rulings,” said Tharisa.
Commenting on the landmark development Tharisa chief executive officer, Phoevos Pouroulis further applauded the move for unlocking the company’s potential to compete on a global scale as a platinum concern of renown;
“ZIMSEZA’s award of the Special Economic Zone status to Karo’s license in Zimbabwe is a critical step in the development of what could become a world class vertically integrated PGM operation. The Karo mine could transform the Zimbabwean PGM sector, bringing significant economic benefits to all stakeholders and building a long-term sustainable mining industry.
“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. We look forward to working closely with ZIMSEZA and the Government of Zimbabwe, together with the local, regional and national stakeholders, as well as our financial partners, to bringing this project to fruition,” said Pouroulis.
So far, Karo Zimbabwe has completed a 238 borehole and 32,4km platinum group metal drilling programme on the property situated on the Great Dyke of Zimbabwe. The drilling focused on the western boundary of the license to average depths of 50m to 150m.
Among other objectives, special economic zones were instituted by the government to create economies of scale adequate enough for beneficiaries to compete internationally; ensure inclusive growth through diversified provincial offerings; maximise economic benefits of geographical locations and attract foreign direct investments (FDIs).
