Gold miner Caledonia Mining Corporation Plc has successfully completed the sale of its 12.2MWac solar plant, which powers Blanket Mine. This unlocks significant value while retaining access to clean energy for its operations.
By Rudairo Mapuranga
The sale, finalized on April 11, 2025, is seen as a strategic move by the miner to refocus capital on its core gold production and growth initiatives.
The plant, commissioned in February 2023, was sold for US$22.35 million to CrossBoundary Energy (CBE), a firm known for financing and operating renewable energy systems for African businesses. The sale was executed through Caledonia’s Zimbabwean subsidiary, Caledonia Mining Services (Private) Limited, after a competitive bidding process led by local financial advisors IH Advisory.
Despite the transfer of ownership, Blanket Mine will continue to benefit from the solar plant’s output through an exclusive Power Purchase Agreement (PPA) signed with CrossBoundary. The agreement ensures that the mine maintains its access to renewable energy, which currently supplies around 20 percent of its daily electricity needs.
Caledonia’s Chief Executive Officer, Mark Learmonth, said the transaction strengthens the company’s financial position and aligns with its growth-focused strategy.
“We are pleased to have completed the sale of the solar plant, strengthening our cash position and enabling us to redeploy capital towards our core gold mining and expansion operations,” Learmonth said.
The 12.2MWac solar plant has delivered over 57,722 MWh of clean energy since coming online, contributing meaningfully to Blanket Mine’s energy mix amid Zimbabwe’s persistent power supply challenges.
The initial construction of the plant was funded through a 2020 capital raise in the United States that generated US$13 million from the issue of nearly 598,000 shares. With a total construction cost of US$14.3 million, Caledonia has effectively realized a profit through the sale.
Following the cash injection, Caledonia’s pro forma consolidated net cash position improved significantly, with net debt reduced to US$3.8 million as of April 9, 2025—down from US$8.7 million at the end of 2024.
CrossBoundary Energy Managing Partner Matthew Tilleard expressed confidence in the acquisition, emphasizing the importance of renewable power in mining.
“Energy provision is an expensive challenge for the mining sector in Africa. The acquisition of Blanket Mine’s solar PV facility is part of our ongoing commitment to providing the best energy solutions for the sector,” he said.
The deal demonstrates how Zimbabwe’s mining sector is beginning to leverage climate-resilient infrastructure while ensuring continuity of operations. It also sets a strong precedent for asset optimization in energy partnerships within the industry.
