Highlights:

• Zimbabwe plans to restart the Darwendale project with $50 million in initial capital
• Global platinum prices jumped 51% YoY, reaching $1,470/oz on July 17
• Tharisa targets 200,000 oz/year from Karo, investing over $186 million in FY2025

Zimbabwe is preparing to relaunch development of the Darwendale platinum deposit, according to Trevor Bernard, CEO of Kuvimba Mining House. The announcement came just days after Tharisa revealed plans to speed up its Karo Platinum project, as platinum prices climb sharply.

In a July 9 update, South Africa-based Tharisa said it is “striving to find financing solutions to accelerate the final development” of Karo Platinum. Located in Zimbabwe, the project could yield 200,000 ounces of platinum group metals (PGMs) per year during the first phase of an operation expected to last over 50 years.

Tharisa invested $84.1 million in Karo during FY2024 and plans to spend $186.2 million in FY2025.

Karo Platinum is e newest low-cost, open-pit PGM asset under construction & located on e Great Dyke??. Tharisa plc exercised its farm-in option & acquired a controlling interest in Karo Mining. Tharisa currently holds a 70% stake of Karo Mining with Leto Settlements holding e bal pic.twitter.com/5RglzsZh71

— NDS1 (@ZimGvt_NDS1) April 1, 2024

Meanwhile, Kuvimba’s Trevor Bernard told Reuters that Darwendale will be relaunched with a reduced initial investment of $50 million, compared to $450 million projected a few years ago. The project stalled in 2022 after Russian investor Vi Holding withdrew due to Western sanctions on Moscow amid the war in Ukraine.

“This is a considerable change in terms of scale,” Bernard said, citing the difficulty of raising large sums for Zimbabwe-linked platinum ventures. Funding will now come from a mix of internal resources, debt, and capital from Zimbabwe’s sovereign wealth fund, Mutapa, which owns Kuvimba.

Global Market Pressures Shift Momentum

Multiple platinum projects have slowed in recent years due to weak prices. Tharisa broke ground at Karo in December 2022, aiming for commissioning by July 2024. However, the firm postponed production to June 2025, citing "low PGM basket prices and uncertain global economic outlook." Tharisa said it could accelerate the timeline if market conditions improve.

That moment may have arrived. On July 17, the platinum benchmark rose 51% year-on-year to $1,470 per ounce, its highest level in over a year. In June 2025 alone, the metal surged 28%, marking its strongest monthly gain since 1986.

The rally reflects strong speculative demand, driven by expected growth in U.S. auto-sector usage, large Chinese purchases, and constrained global supply. In May, the World Platinum Investment Council (WPIC) forecast a third consecutive annual market deficit in 2025, totaling 966,000 ounces.

Yet questions remain over whether producers can overcome financing hurdles. Citigroup expects a near-term pullback, forecasting $1,250/oz over the next three months, while the World Bank argued in late June that “tight supply conditions will continue to support platinum prices.”

Last month, WPIC projected Zimbabwe will refine 491,000 ounces of platinum in 2025, potentially rising to 563,000 ounces by 2027. The group’s upcoming reports will shed light on whether investors believe in the execution capacity of players like Kuvimba and Tharisa.

Globally, South Africa dominates the platinum landscape, with 3.8 million ounces expected in 2025, out of a total of 5.4 million ounces of projected global output. Other key producers include Russia, Canada, and the United States, though at much lower volumes.

This article was initially published in French by Emiliano Tossou

Edited in English by Ola Schad Akinocho