Karo invests US$8m into rebuilding Ngezi mine dam

Karo Platinum Holdings says it is reconstructing a US$8 million dam that will supply water to the processing plant of its mine in Ngezi, Mhondoro, for the lifetime of the mine.

The open-pit platinum group metals (PGM) project of the business is estimated to cost US$391 million in its initial phase of development.

Despite declining global metal prices, particularly for platinum, Karo has promised to keep making significant investments in growing its PGMs asset in the nation.

Mine development has already started, with different concrete structures for the processing plants being built after a trial operation that resulted in the stockpiling of 68 000 metric tons of ore was completed.

Karo Platinum head of construction Gawie Van Der Westhuizen said during a tour of the mine recently that the company had also as part of its plans a much bigger dam project in the US$8 million reservoir under construction.

We are renovating this ancient dam to essentially build a 350,000 cubic meter dam basin that will be used only to feed water to the mining processing plant.

He explained, "It will feed this plant for the life of the mine through a water treatment plant that we are building on the southern side of the dam."

Mr. Westhizen stated that Karo had dug the base section to around nine meters, redesigned the entire concrete wall of the dam, and installed new pipes as part of the development.

"Thus, we have expanded the capacity of this dam to roughly 350 000 cubic meters, which is less than the one we intend to construct," the speaker stated.

Dr. Josphat Zimba, the country manager, estimates that the mine will need to draw roughly 30 megawatts of electricity from the grid in order to run its initial phase.

According to him, Karo has also signed a contract with ZETDC to deliver that energy, and if necessary, they may even import energy from the area.

In addition, he stated, "we will be constructing a 30-megawatt solar plant in parallel to supplement Karo's power supply. The idea is to feed any excess power generated that Karo is not using into the national grid."

He mentioned that the renovation of the substation and the 31-kilometer power line from Selous to the mine will cost US$5 million apiece.

 "We intend to enhance the solar substation by adding a 125 MVA transformer. Additionally, we aim to install a 31-kilometer, 132 kV line to the location. Finally, we will reduce the use of 2×40 MVA transformers on the site," he stated.

According to Dr. Zimba, the company will also look to collaborate with regional rural district authorities on housing projects for its employees, and it will build a few homes near the mine for essential staff.

At full capacity, he claimed, Karo will employ at least 1,000 people, and a net effect of 1 in 7 will result in the creation of at least 7,000 new employment.