Chronicle Editor
Nqobile Bhebhe, Senior Business Reporter
VICTORIA Falls Stock Exchange (VFEX)-listed company, Caledonia Mining Corporation Plc, says its 12,2MW solar plant, which was connected to the Blanket Mine electrical grid in Gwanda last November is operating efficiently and generating slightly more power than was anticipated.
The solar plant provides approximately 27 percent of Blanket’s average daily electricity demand.
This has seen a marked reduction in the amount of diesel consumed in the mine and has reduced the frequency of interruptions to production.
In 2020, Caledonia announced that the $14 million solar power was part of efforts to address electricity constraints that have over the years affected the mining industry.
The project is in line with the Government’s strategy to boost power production.
In a trading update today (Friday) chief executive officer, Mr Mark Learmonth said the completion of the solar project coincided with an improvement in the supply of power from the Zimbabwe grid, which has substantially reduced the amount of diesel consumed.
“As an initial early-stage indicator, in January 2023, Blanket consumed 18,000 litres of diesel, which compares to approximately 120,000 litres per month for the whole of 2022,” he said.
“Whilst we can’t be certain that this quantum of improvement will be fully maintained as the year progresses, we are confident that we will continue to see an ongoing meaningful reduction to our diesel usage month on month, fully justifying our investment in solar power and delivering on our ESG strategy,” he said.
The alternative energy project buttresses the country’s shift towards investments in clean energy sources in keeping with global climate change adaptation and mitigation commitments.
At a time when the country and the region are experiencing subdued energy generation, the investment is expected to go a long way in capacitating the company to tackle power outages and trimming down on expensive costs associated with alternative power while enhancing operational efficiencies.
The improved supply of power comes at a time when the firm is in a buoyant mood after achieving a record 80,775 ounces last year against a set target of 80 000 ounces, as it plans to pour millions of dollars towards capital expenditure.
The mining house is eying consolidating its strategy of becoming a multi-asset gold producer by acquiring several lucrative mining assets.
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