Tharisa Plc has approved a capital investment of ZAR9.4 billion (approximately US$507 million) to transition its flagship Tharisa Mine, situated in the Marikana district near Rustenburg, from open-pit to underground operations. The decision marks a significant milestone in the Johannesburg- and London-listed company’s long-term strategy to sustain its operations and advance its integrated model of African resource development.
The company, listed on both the Johannesburg Stock Exchange (JSE: THA) and the London Stock Exchange (LSE: THS), said the expansion will extend the mine’s life by over two decades, securing stable feedstock for its processing facilities. The phased rollout of the underground project is expected to begin in 2026, starting with shaft development and orebody access.
Tharisa’s Chief Executive Officer, Phoevos Pouroulis, emphasised that the project is designed to unlock the mine’s multigenerational resource base and enhance operational efficiency. “The transition ensures continuity, resilience, and sustainable value creation from one of Southern Africa’s most important chrome and PGM deposits,” he said.
Currently, Tharisa produces around 180,000 ounces of platinum group metals (PGMs) and 1.6 million tonnes of chrome concentrates annually. As surface reserves near depletion, the underground development is expected to improve ore recovery and reduce long-term operating costs.
The new investment follows the company’s successful completion of the US$391 million Karo Platinum Project in Zimbabwe earlier this year, where first concentrate was produced in July 2025. Together, these developments position Tharisa to balance production between its South African and regional operations, offering greater flexibility amid fluctuating global PGM prices.
Tharisa has indicated that details of the financing arrangements — including the combination of debt, internal cash flows, and potential project finance facilities — will be announced in a forthcoming update.
Founded in 2006 by mining entrepreneur Loucas Pouroulis, Tharisa operates through a vertically integrated structure encompassing Arxo Metals, Arxo Resources, and Arxo Logistics. It also maintains a 70% shareholding in Karo Mining Holdings, which is developing platinum assets in Zimbabwe.
From a financial perspective, Tharisa remains conservatively valued relative to its peers, with a market capitalisation of around ZAR7 billion (US$380 million) and an enterprise value near US$490 million. The miner trades at an EV/EBITDA multiple of approximately 2.8×, below the industry average, and a price-to-earnings ratio of 3.1×, compared with a sector mean of roughly 7×. Its return on equity of 13% and a net debt-to-EBITDA ratio of 0.6× reflect prudent capital management and operational discipline.
This financial strength, coupled with a low gearing profile, provides Tharisa with sufficient flexibility to pursue strategic growth while maintaining dividend capacity, even during periods of commodity market volatility.
The transition to underground mining at Marikana represents a broader continental narrative of African resource maturity — one that underscores not only the extraction of value from the ground, but also the deepening of technical expertise, infrastructure capability, and regional economic interdependence. The project’s long-term horizon reinforces Africa’s role in shaping its mineral future through self-determined, sustainable industrialisation strategies.
