Mnangagwa commissions US$67 million central shaft
Today President Emmerson Mnangagwa commissioned the central mine shaft at Blanket Mine which is part of Caledonia Mining Corporation‘s US$150 million investment into the Gwanda-based gold mine.
US$67million went into the construction of the central shaft, while US$14 million went into the construction of the mine’s 12-megawatt solar plant which has since been connected to the national grid.
Commissioning the mining shaft, President Mnangagwa said besides the positive impact on the province’s Gross Domestic Product (GDP), the newly constructed plant will create more jobs from the current 500 to 1600 workers, while revenue is set to shoot up to US$148 million dollars from US$123 million.
“I challenge other mining houses to increase investment in their operations for the realisation of maximum value from our mineral resource base for the good of the economy and our people in general. As the government, we have made a bold decision to ensure that every citizen of Zimbabwe benefits from our natural resource endowment, now and into the future,” Mnangagwa said.
“Let me take this opportunity to confirm and advise all mining houses that my government does not accept royalties in US$ anymore, what we want is a fraction of that, so that we build our mineral reserves and benchmark our local currency against our stock of minerals as we also safeguard the interest of our future generations using our God-given resources. This is a game changer in the development of our country and I take pride in this development,” the head of state added.
President Mnangagwa also spoke about the need for the country to invest more in innovation as the country focuses on accelerated industrialisation.
“In line with Vision 2030 and the National Development Strategy, greater effort should be put towards the value addition and beneficiation of our mineral resources and other primary products. We cannot, as a country continue to be exporting primary products including concentrates. Our people must fully enjoy the benefits of moving up the value chain such as increased profitability and terms of trade as well as employment and empowerment opportunities,” noted the President.
With the mining industry being the country’s primary foreign currency earner, the increase in production by the Blanket Mine not only brings hope to the country but also feeds into the target of a US$12 billion mining economy by the end of 2023.
The 1200-metre shaft which gobbled in excess of US$67 million will see the mining giant’s gold output jumping from less than a quarter of a tonne per annum to 2.4 tonnes per annum.
In his statement, Caledonia Chief Executive Officer Mr Mark Learmonth commended efforts to make Zimbabwe an attractive mining jurisdiction.
“The increase in gold output will benefit all stakeholders in Blanket mine through increasing employment, higher profitability and increased contributions to the fiscus. Your Excellency, I would like to commend your government for continued efforts to make Zimbabwe a more attractive mining jurisdiction. This work is not in vain as evidenced by expanding mining output as well as Zimbabwe’s shortlisting as one of the most improved mining jurisdictions in the world,” said Learmonth said.
Industry captains who attended the commissioning of the shaft commended the Mnangagwa-led government for the path it has taken in transforming the mining sector.
Chamber of Mines Chief Executive Officer Mr Issac Kwesu said the development will see growth in mineral export.
“When you look at this project it means we expect growth in the mineral export. We expect an increase of 17% in gold only, coming from the construction of this central shaft and this will take us to another level and the industry will never be the same again.”
Mines and Mining Development Minister Hon Winston Chitando said the shaft will see Blanket increase production.
“I am pleased to tell you that, the central shaft which is one of the deepest in the country will enable Blanket mine to increase production, which in turn is a step towards the attainment of the US$12 billion mining industry by 2023. The economies of scale arising from the central shaft will contribute to managing costs on this mine,” Chitando said.
About Caledonia Mining
Caledonia Mining is a profitable cash-generative gold producer with a strong growth profile, Caledonia’s primary asset is the Blanket Mine in Zimbabwe. By 2022 the Company plans to increase its annual production to 80,000 ounces.
The Company pays a quarterly dividend of 14 cents a share. The dividend has been increased 7 times & is a 104% increase from 6.875 cents announced in October 2019.
Caledonia is committed to evaluating investment opportunities in Zimbabwe; in November 2021 it entered into an option agreement to acquire the mining claims over Maligreen and in July 2022 announced that it had signed an agreement to purchase Bilboes Gold Limited.