By Judith Nyuke
Once hailed as a game-changer for Zimbabwe’s mining industry, Victoria Falls Stock Exchange listed platinum mining company, Karo Mining Holdings is allegedly facing substantial challenges, resulting in workforce cuts and project postponements.
The company, having initially pledged to establish itself as a significant platinum producer, appears to be experiencing difficulties in maintaining its initial trajectory.
Recently, it was reported that declining platinum group metal (PGM) prices have caused repeated delays to Karo Platinum’s project, now slated for commissioning in the second half of 2026, after initial targets of July 2024 and June 2025.
These postponements are a consequence of funding constraints arising from the currently subdued PGM market.
It is now alleged that, faced with these financial difficulties, Karo Platinum has begun a retrenchment process.
However, the retrenchment process has sparked controversy due to allegations of insufficient consultation with affected employees and claims of preferential treatment for individuals linked to management, raising concerns about fair labor practices and transparency.
In an effort to obtain clarification regarding the allegations, this publication contacted Karo Mining. Mr. James Muchando, Legal Counsel and Company Secretary, confirmed receipt of the inquiry concerning the alleged retrenchments; however, no response had been received as of publication.
This publication has learnt that the decline in platinum group metal (PGM) prices has had a substantial negative impact on the financial position of Karo Platinum.
A 26% drop in the average PGM basket price, from $2,564 per ounce in 2022 to $1,893 per ounce in 2023, forced the company to restructure its projects.
They are now divided into smaller, more manageable pieces that can be supported by the available funding.
However, despite the setbacks, Karo Platinum remains optimistic about the long-term PGM market and has announced active efforts to secure $225 million in debt financing and $31.2 million from an equity partner to complete project construction.
