Chronicle Editor
Oliver Kazunga, Senior Business Reporter
CALEDONIA Mining Corporation, which owns Matabeleland South gold mine, Blanket Mine, has raised US$13 million for the construction of the planned 20MW solar power plant at the mine.
Caledonia announced recently that the proposed solar project was part of efforts to address electricity constraints that has over the years affected the mining industry.
The planned project is in line with the Government’s strategy to boost power production.
In a statement, the mining group said working capital for the proposed power plant was secured from a share sale on the New York Stock Exchange.
“The company has now raised US$13 million through the sale and issue of 597 963 shares in the company,” said Caledonia.
It is hoped that if installed the investment would supply Blanket’s baseload demand during peak sunlight hours.
The mine is presently relying on a back-up generator with about 12,5MW which has the capacity to run the entire mine at full capacity.
The mine has also invested in another 6MW diesel generator to guarantee power supply.
Meanwhile, Caledonia described its Blanket Mine production performance in the quarter ended June 30, 2020 as an outstanding achievement, with gold output rising 6,2 percent at 13 499 ounces.
Gold output for the first half of 2020 stood at 27 732 ounces, up 12,4 percent compared to the same period last year.
In the relative period last year, the mining concern registered 24 660oz.
The firm’s production guidance for this year remains unchanged at 53 000 to 56 000oz. — @okazunga
Bongani Ndlovu