Published: 14 April 2025

Caledonia Mining Corporation, the operator of Blanket Mine in Gwanda, has announced a US$14.3 million profit following the sale of its 12.2-megawatt solar power plant for US$22.35 million to CrossBoundary Energy Holdings.

The transaction was finalised on April 11, 2025, marking a strategic shift in Caledonia's asset management as the company reallocates resources to its core gold mining and expansion activities.

In a statement on Monday, Chief Executive Officer Mark Learmonth highlighted the financial and operational benefits of the sale.

"By selling the plant for $22.35 million, Caledonia realises a profit on the $14.3 million construction cost. Importantly, we retain the exclusive energy off-take agreement, ensuring that approximately 20 percent of Blanket Mine's daily electricity needs continue to be met by renewable energy," Learmonth said.

The solar plant was initially developed to provide stable and clean power to the Blanket Mine, helping to mitigate the impact of Zimbabwe's power supply challenges. Caledonia's off-take agreement with CrossBoundary Energy will allow the mine to maintain access to this sustainable power source without owning the asset.

Matthew Tilleard, Managing Partner at CrossBoundary Energy, said the acquisition aligns with the company's strategy of supporting African mining operations through innovative, renewable energy solutions.

"Through a power purchase agreement, Blanket Mine will continue utilising the benefits of distributed renewable power whilst freeing up capital for its value-generating mining activities," he said.

The sale is seen as a win-win for both parties - Caledonia improves its liquidity and focuses on gold production, while CrossBoundary expands its renewable energy footprint in Zimbabwe's mining sector.

Industry analysts say the move reflects a growing trend in which mining companies outsource energy generation to specialised providers, enabling them to prioritise operational efficiency and capital deployment in high-return areas.
- online

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