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The payment was made to the Gwanda Community Share Ownership Trust, a shareholder in the mining concern, in donations and advance dividends with a further US$1 million payout set to be dispensed by the end of this month.
Blanket said it was happy that some of the payments it has made to the Gwanda Community Share Ownership Trust have been used by the trust to buy water-drilling equipment, which is now being used to alleviate the water supply problems facing the communities of Gwanda district.
The dividend declaration is the first such tangible outcome of the ongoing indigenisation programme and demonstrates the Government’s empowerment programme has potential to transform people’s lives.
“As at 28 March, 2013, Blanket had made payments totalling US$4 million to GCSOT, comprising donations and advance dividends, with a further US$1 million advance dividend payment due by April 30, 2013,” said Caledonia.
Blanket became largely owned by indigenous investors following the announcement on October 11, 2012 that Caledonia had completed transactions for the implementation of indigenous transactions.
The firm is now owned 49 percent by Caledonia, 10 percent by the Gwanda Community Share Ownership Trust, 10 percent by Blanket Employee Trust, 15 percent by Fremiro, a consortium of local investors and 16 percent by the National Indigenisation and Economic Empowerment Fund.
In a demonstration of its commitment to Zimbabwe and its belief in strong profitability prospects for Blanket Mine, Caledonia and its local partners approved a US$37 million capacity expansion programme.
The investment programme is expected to result in progressive increases in gold production to approximately 76 000oz in 2016 with further upside potential coming from development of satellite deposits.
The satellite deposits to be exploited are built into Blanket Mine’s capital expenditure programme, but they are not reflected in the gold production target of the Gwanda-based gold producer.
Caledonia president Mr Stefen Heyden said production had further quadrupled to 45 465oz since resuming operations in 2009 and record output since it started major recoded production in 1906.
Fourth quarter gold production of 11 821oz represented a 12 percent increase on fourth quarter 2011 (the “comparable quarter”) of 10 533oz as operating expenses per ounce fell 1,7 percent to US$571.
“Exploration and development work is currently well underway at the first four satellites with development work planned to commence on two others during 2014.
“Importantly, the Blanket crushing and metallurgical plant has surplus capacity and any incremental ore from these satellites could be treated with modest additional capital investment,” Mr Heyden said in a statement.
During the year Blanket Mine made payments in respect of direct and indirect taxes, royalties, licence fees, levies and other payments to the Government totalling US$20,17 million.
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