Miner eyes expanded growth in Zimbabwe

April 5, 2024
BLANKET INVESTMENT Caledonia Mining Corporation has changed its mining strategy to become a multi asset gold producer in Zimbabwe | Report Focus News
Caledonia Mining Corporation shifts strategy, aiming to become a multi-asset gold producer in Zimbabwe with investments in Blanket.

Caledonia Mining Corporation, explorer, developer, and miner, has shifted its strategy towards becoming a multi-asset gold producer. Spearheaded by its acquisitions of Motapa Mining Company in November 2022, Bilboes Gold in January 2023, and the Maligreen brownfield operation in the Gweru mining district, Caledonia aims to establish a portfolio of top-tier development and exploration projects, as highlighted by CEO Mark Learmonth. These acquisitions not only fortify the company’s long-term investment in Blanket, expected to extend into the mid-2030s, but also promise enhanced shareholder value. While there are no immediate plans for deeper mining, such ventures remain under consideration pending favourable results from continuous deep-level exploration.

Efficiency and growth remain paramount for Caledonia, particularly in Zimbabwe’s challenging mining environment, where reliable electricity supply poses a significant operational hurdle. To mitigate this risk, the company has heavily invested in backup diesel generators and a 12 MW solar PV plant. The recent commissioning of the Central Shaft enhances operational flexibility, albeit with increased electricity demands, managed adeptly by the technical team.

Furthermore, Caledonia places strong emphasis on fostering mutually beneficial relationships with local communities, underpinned by its corporate social responsibility strategy. Noteworthy initiatives include empowering local communities through education, health, agriculture, and women and youth empowerment programs. With a majority stake in Blanket, complemented by strategic shareholdings distributed among indigenous Zimbabweans and community trusts, Caledonia demonstrates its commitment to local empowerment and socio-economic development.

As part of its commitment to Zimbabwe, Caledonia endeavours to increase the representation of Zimbabwean nationals on its board of directors, further solidifying its dedication to the country’s mining industry.