Blanket Mine (1983) (Private) Limited, a subsidiary of Caledonia Mining Corporation Plc, has made a further dividend payment of US$1.8 million to the Gwanda Community Share Ownership Trust (GCSOT), reinforcing what has become one of Zimbabwe’s most enduring and tangible examples of mineral wealth benefiting host communities, Mining Zimbabwe can report.
By Rudairo Mapuranga
This latest disbursement, confirmed by the mine on Monday, brings the total cumulative contributions from Blanket Mine to the Trust since its establishment in 2012 to approximately US$16.4 million. The Trust holds a 10% shareholding in the mine under a government-initiated community empowerment framework.
Commenting on the payment, Elton Gwatidzo, General Manager of Blanket Mine, said the relationship between the mine and the Trust remains an important example of how mining can create lasting benefits beyond the mine boundary.
“We are proud of this long-standing partnership and remain committed to ensuring that the success of Blanket Mine continues to deliver value for the communities that host our operations,” Gwatidzo said.
The dividend payments are not discretionary gifts but are linked to Blanket Mine’s financial performance, a framework designed to provide predictability and allow the Trust to plan and execute long-term development projects.
The US$1.8 million payment follows a significant increase in dividends to the GCSOT in recent years, reflecting Blanket Mine’s strong operational performance. In 2025 alone, the Trust received US$5.5 million from the Caledonia Group, a sharp rise from US$1.4 million the previous year.
Caledonia’s latest Environmental, Social and Governance (ESG) Report shows the group has contributed approximately US$250 million to the Zimbabwean economy over the past nine years through employment, local procurement, taxes, royalties, and statutory payments. The company spent US$31.9 million on local suppliers in 2025, nearly doubling its local procurement from US$16.5 million in 2024.
From Dividends to Tangible Development
The Gwanda Community Share Ownership Trust, chaired by Chief Mathema, has channelled these funds into an array of projects that have transformed the district, delivering visible improvements in service delivery and economic activity.
Among the most impactful interventions has been the rehabilitation of Gungwe Dam, a US$300,000-plus project that now provides water to more than 3,000 households in drought-prone Gwanda South. The project has enabled the revival of irrigation schemes, fish farming, horticulture projects, and agricultural production.
In education, the Trust has constructed and equipped Advanced Level science laboratories at five secondary schools, built classroom blocks at five schools, supplied furniture, and sponsored university and teacher-training students. In health, it has constructed clinics and renovated health facilities.
The Trust has also adopted a business-oriented approach in recent years, diversifying into income-generating projects such as pen fattening, microfinance, property investment, and borehole drilling to supplement revenue from mining. Speaking on the strategic direction, Coster Nkala, Chief Executive Officer of the GCSOT, stated that the dividend comes at a perfect time, as the Trust has just developed its new five-year strategic plan, which contains a number of social and enterprise development projects that require capital.
An Industry Benchmark
Caledonia operates one of Zimbabwe’s most transparent and sustained models of community benefit-sharing. Beyond the Community Trust, employees hold a separate 10% stake through the Employee Trust, which reached a milestone in 2025 with the final repayment of the loan used to acquire its shareholding. A February 2026 dividend paid to employees based on Blanket Mine’s 2025 performance translated to approximately US$600 per beneficiary.
This stands in contrast to the experience of many Community Share Ownership Trusts established under the 2013 legal framework, which have faced operational setbacks, including poor governance and mismanagement. The Government recently announced plans to reform the CSOT model to improve oversight and transparency. The Gwanda Trust’s success offers a case study in how the model can work when properly governed and funded.
ESG at the Core
The Caledonia Group believes that communities hosting mining operations should share in the economic benefits generated by those operations. The payment reflects the group’s ongoing commitment to responsible mining and strong ESG performance.
Mark Learmonth, Chief Executive Officer of Caledonia Mining Corporation, has previously said that “long-term alignment is strongest where employees and communities each hold a genuine stake in the business.”
With Blanket Mine maintaining its 2026 production guidance of 72,000 to 76,500 ounces and the company advancing its multi-asset growth strategy with the Bilboes project, the foundations for continued community benefit appear set to strengthen in the years ahead.
