Online Reporter
Nqobile Bhebhe, Senior Business Reporter
Caledonia Mining, the owner of gold producer Blanket Mine in Gwanda, has made a profit of $14.3 million after selling its solar plant for US$22.35 million.
The mining company completed the sale of its 12.2-megawatt solar plant on 11 April to CrossBoundary Energy Holdings.
In an update on Monday, Chief Executive Officer Mr. Mark Learmonth said the sale strengthens the company’s cash position and allows it to redeploy capital towards its core gold mining and expansion operations.
“By selling the plant for $22.35 million, Caledonia realises a profit on the $14.3 million construction cost. Importantly, we retain the exclusive energy off-take agreement, ensuring that approximately 20 percent of Blanket Mine’s daily electricity needs continue to be met by renewable energy,” said Mr Learmonth.
Mr Matthew Tilleard, Managing Partner at CrossBoundary Energy said the acquisition of Blanket Mine’s solar PV facility is part of the company’s continued commitment to supporting the mining sector with innovative energy solutions.
“Through a power purchase agreement, Blanket Mine will continue utilising the benefits of distributed renewable power whilst freeing up capital for its value-generating mining activities,” he said.
Under the terms of the sale, the solar plant will continue supplying Blanket Mine with electricity under an exclusive power purchase agreement, ensuring a reliable and sustainable energy source for the mine.
