[SMM Chromium Week Review] Chrome Ore Flows Rebound as China Port Stocks Build, Zimbabwe Eyes Ferrochrome Capacity

Tharisa confirmed its transition to underground mining at its flagship Tharisa Mine, on the southwestern limb of South Africa's Bushveld Complex, remains on time and within budget, running in parallel with the Karo Platinum Project's construction financing in Zimbabwe. Development of the Apollo underground complex, which commenced in March 2026, is progressing toward first run-of-mine ore in the current quarter, with steady-state production of 255,000 mt per month targeted by the third quarter of calendar year 2029. The Orion complex is expected to follow, targeting first ore in financial year 2031 and steady-state production by the third quarter of calendar year 2033. Together, Tharisa said the two underground complexes are expected to extend mining at the Tharisa Mine, which co-produces chrome concentrate alongside PGMs from the same orebody, for more than 60 years beyond depletion of the current open pit. The underground project is fully funded through development loans from Absa and Standard Bank and an asset-based revolving facility from Nedbank, funding that sits separately from the US$300 million Nordic bond raised this week for Karo. The company did not break out what share of Apollo or Orion's future run-of-mine ore output will be chrome-bearing material versus PGM-bearing material, leaving the underground transition's specific impact on Tharisa's chrome concentrate volumes still to be clarified as the two complexes ramp up toward steady state.

Tharisa said its co-mining model, in which chrome cash flow supports PGM development through the commodity cycle, continues to underpin its growth strategy, with spot chrome prices trading at US$290 per mt as of early September 2026. The company disclosed the figure alongside news that it had secured a Special Mining Lease Agreement with the Government of Zimbabwe, a long-term PGM offtake agreement with Valterra, and priced a US$300 million, five-year senior secured Nordic bond, three milestones the company says de-risk and fully fund construction of its Karo Platinum Project on Zimbabwe's Great Dyke. CEO Phoevos Pouroulis said the completed milestones mark a transformative moment for Tharisa, describing the group as evolving into a multi-asset, multi-jurisdictional PGM and chrome producer with a combined mine life exceeding 60 years once Karo and the Tharisa Mine's underground transition are both in production. While the financing package itself is structured around PGM development, chrome remains the funding backbone of the strategy: Tharisa's disclosure frames chrome revenue as the through-cycle cash generator that allows the group to pursue capital-intensive PGM growth projects such as Karo without relying solely on external financing, a dynamic reaffirmed rather than changed by this week's bond pricing.

As of this Friday, SiMn 6517 (cash) prices in north China were 5,800-5,900 yuan/mt, up WoW from last Friday; in south China, SiMn 6517 (cash) prices were 5,850-5,950 yuan/mt, up WoW from last Friday, and SiMn 6014 (cash) prices in south China were 5,400-5,500 yuan/mt, up WoW from last Friday. Recently, SiMn futures consolidated on a strong note, with market pessimism easing somewhat, though wait-and-see sentiment still prevailed.