President commissions US$67 million Blanket Mine expansion project 

Judith Phiri in Gwanda 

PRESIDENT Mnangagwa on Thursday officially commissioned the US$67 million new Central Shaft Expansion Project at Blanket Mine in Gwanda District, Matabeleland South Province.

The project, which was launched in 2015 and completed last year by Caledonia Mining Corporation- which owns 64 percent of Blanket Mine- has deepened their operations to 1 200 metres below the surface thus tapping into the higher gold ore deposits.

The investment is viewed as a major boost to the country’s mining sector, as it drives towards attainment of the US$12 billion milestone by 2023.

Officially commissioning the project, President Mnangagwa commended Caledonia Mining Corporation stating that the milestone will go a long way towards the realisation of the projected target of 60 tonnes of gold by 2030.

“I applaud Blanket Gold Mine for this investment of a total of approximately US$67 million which was undertaken through internal cash flow and built in-house under the supervision of Sinking Engineering Mining Construction (Pvt) Ltd.

“It is also noteworthy that the works done under this Central Shaft Expansion Project will extend the Blanket Mine life span. Meanwhile, targeted production is set to be boosted to 80 000 ounces of gold per annum,” said President Mnangagwa.

“This investment has resulted in employment levels at this mine moving from 500 to 1 600 workers, while revenue has increased from US$123 million per annum to over US$148 million, respectively.”

He commended the confidence shown by Caledonia Mining Corporation in the investment environment created under the Second Republic and said the Group has not only invested in expanding its mining operations but is also one of the first companies to list on the Victoria Falls Stock Exchange.

The President said it showed that indeed Zimbabwe is open for business and a land of great opportunity for any investor.

“Under the National Development Strategy 1 (NDS1), we committed to prioritise the expansion of existing mines as a strategy to grow our mining sector. To this end, the Expansion of the Central Shaft is one of the many successful projects that have been undertaken by stakeholders in the mining sector.”

President Mnangagwa challenged other mining houses to increase investments in their operations for the realisation of maximum value from the mineral resource base for the good of the economy and the people in general.

He said as Government, they have made a bold decision to ensure that every citizen of Zimbabwe benefits from the rich resource endowment, now and into the future.

“Hence, from the 1st of October, the collection of half of the royalties from gold, diamonds, platinum and lithium, among other precious stones and valuable metals, shall be made in the form of the physical stocks of the mineral concerned.

“This policy will undoubtedly have ripple effects on currency stability and benefit from the envisaged positive output growth across all minerals on the back of firm commodity prices and a conducive operating environment,” said President Mnangagwa.

“Going forward, I urge mining houses to gradually transform into low carbon and digitally enabled organisations. Further, I urge the sector to prioritise local procurement. On their part, capacitated local manufacturers should produce competitively priced goods and services. These initiatives must result in the development of supportive industry clusters, for mutually beneficial improvements in infrastructure, supplier capacity and human resources.”

President Mnangagwa called on mining houses to adopt new innovation and invest in contemporary technologies towards enhancing productivity and profitability as well as the collective quest to reduce the carbon footprint on our planet.

He said the new investments by mining houses such as Blanket Gold Mines Central Shaft Expansion are not only playing a key role in increasing exports and employment, but also increasing the demand for power.

“I commend Blanket Mine for installing the recently commissioned solar plant to power their operations. This is in line with the Second Republic’s policy on increasing the use of green energy solutions.”