Chronicle Editor
Sikhulekelani Moyo, [email protected]
CALEDONIA Mining Corporation Plc has signed a US$22,35 million conditional sale agreement with Cross Boundary Energy Holdings for the sale of the entire issued share capital Caledonia Mining Services (CMS), which owns and operates the 12,2MW solar plant that supplies power to Blanket Mine.
The US$14 million 12,2MW solar power was officially commissioned by President Mnangagwa in 2022 as part of efforts by the company to address electricity constraints that have affected the mining industry over the years.
The project, connected to the Blanket grid in November 2022, aligns with the Government’s strategy to boost renewable power production.
The electricity generated from the solar plant has significantly reduced the use of diesel generators and grid power at Blanket Mine, ensuring approximately a fifth of the mine’s daily electricity needs are met by solar power.
In a latest statement, Caledonia said upon completion of the sale, Caledonia will realise a profit on the US$14,3 million construction cost by selling the plant for US$22,35 million.
The company said completion of the sale will return capital to Caledonia at a key moment in the company’s growth trajectory.
“We are pleased to have signed this agreement to sell the solar plant, which upon completion, will enable us to redeploy capital to our core business of mining,” Caledonia chief executive officer, Mr Mark Learmonth, said.
“Whilst the sale will generate an immediate profit for the company, more importantly, we have identified an experienced partner in Cross Boundary Energy Holdings (CBE), which brings vast expertise in delivering and running renewable energy projects.
“We look forward to developing a strong relationship with CBE. We are already working with them to deliver a meaningful extension to the plant, and we will be considering renewable energy solutions at our other development projects in due course.”
…More to follow
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