Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
CALEDONIA Mining Corporation has said no amendments will be made to its Bilboes Gold Project Technical Report Summary following the enactment of Zimbabwe’s Finance Act Number 7 of 2025, which legalises measures outlined in the country’s 2026 National Budget.
Gwanda-based Blanket Mine remains the flagship asset of Caledonia Mining Corporation and a major contributor to Zimbabwe’s economy. The Bilboes Gold Project is strategically important to Caledonia, forming the cornerstone of the company’s ambition to transition from a single asset producer into a multi asset, mid tier gold producer in Zimbabwe.
Gold is strategically important to Zimbabwe as a leading source of foreign currency and export earnings, a key pillar supporting monetary stability through the gold-backed ZiG currency, and a critical driver of employment and livelihoods.
Zimbabwe’s gold output rose by 17 percent to an all-time high of 46,7 tonnes in 2025, up from 36,48 tonnes in 2024, according to Fidelity Gold Refinery (FGR), the country’s sole gold buyer.
Caledonia said provisions contained in Finance Act Number 7 validate the position set out in its December 19, 2025, announcement regarding proposed changes to the tax and royalty regime.
In an update, the mining firm said, “The enacted provisions confirm the position outlined in the announcement of December 19, 2025.
“Specifically, the royalty rate of 10 percent will only apply if the gold price exceeds US$5 000 per ounce.
The other proposed changes to the tax and royalty regime that were highlighted in the announcement of December 1, 2025, have been withdrawn.”
Zimbabwe’s gold royalty framework is price based, with recent legislative changes maintaining the rate at 5 percent for gold prices between US$1 200 and US$5 000 per ounce, while a higher 10 percent royalty applies only when prices exceed US$5 000 per ounce.
“Caledonia confirms that no amendments are therefore required to the Bilboes Gold Project Technical Report Summary, which was published on November 25, 2025, as a result of the changes proposed in the Budget that were highlighted in Caledonia’s announcement of December 1, 2025,” the firm added.
The confirmation provides greater regulatory and fiscal certainty for the Bilboes Gold Project and reinforces the credibility of the technical and economic assumptions previously disclosed by the company.
Caledonia is strengthening its position as one of Zimbabwe’s leading gold producers, with a medium term production target of 300 000 ounces anchored by the Bilboes project.
In 2023, the Victoria Falls Stock Exchange listed group invested US$65,7 million to acquire the Bilboes Gold Project, located in Bubi District, Matabeleland North Province, a transaction that marked a significant milestone in the company’s growth strategy.
A feasibility study conducted at the time projected annual production of between 250 000 ounces and 300 000 ounces from the open pit mine, a scale expected to elevate Caledonia into the ranks of emerging Tier 1 African gold producers.
Caledonia, whose flagship operation is Blanket Mine in Gwanda, Matabeleland South Province, also holds the Maligreen Goldfields and Glen Hulme projects in Gweru, Midlands Province, as it advances its strategy to become a multi asset gold producer in Zimbabwe.
