ESPA to Build Karo Mine in Zimbabwe

Spanish engineering firm EPSA has been awarded the flagship contract to develop Tharisa’s Karo Platinum Mine, a cornerstone project for Zimbabwe’s mining sector.

EPSA is mobilising to the site this month, marking its inaugural venture in the country.

The development comes after years of delay caused by persistently weak platinum group metals (PGM) prices.

However, a dramatic 45% recovery in the platinum market during 2025 has revitalized the project’s economics.

In a statement, Karo attributed the move forward to this rebound, which “has improved the estimated fundability and debt capacity of the project.”

With engineering, procurement, and construction management now formally entrusted to EPSA, the path to production is clear.

Karo confirmed that mining operations are slated to commence in 2027.

Significant on-site progress is already underway. The company reported that key processing mills have been installed, and critical infrastructure for water and power supply is advancing.

A crucial element for securing final project financing is the fiscal agreement with the Zimbabwean government.

Karo said that,  “Key fiscal provisions are being finalised with our strategic partners, the Government of Zimbabwe, ensuring bankability and funding security.”

This indicates ongoing high-level negotiations to lock in the fiscal regime necessary to attract large-scale debt funding.

The Karo Platinum project, located on the Great Dyke geological formation, represents one of Zimbabwe’s largest planned mining investments.

The entry of EPSA, a global player in mining engineering, signals renewed international confidence in Zimbabwean resource projects following the recovery of commodity prices.

The development is a significant boost for Zimbabwe’s economy, promising substantial foreign investment, infrastructure development, and thousands of jobs during construction and operation.