Oliver Kazunga
Senior Reporter
Zimbabwe’s ambition to build a stronger, more productive mining industry is receiving fresh impetus, with major gold producer Caledonia Mining Corporation advancing an expansion drive that could widen the country’s future gold production base and strengthen export-earning capacity.
The company’s growing investment programme — anchored by development of the Bilboes Gold Project, expansion initiatives at Blanket Mine and exploration at Motapa in Matabeleland South and Matabeleland North respectively — is positioning Caledonia for a potentially larger contribution to Zimbabwe’s gold industry.
The developments come against the backdrop of Zimbabwe’s mining-led economic transformation agenda under the Second Republic, which President Mnangagwa has prioritised to increase mineral production, investment, value addition and the sector’s contribution to national economic growth. The strategy places mining at the centre of efforts to expand productive capacity, grow exports, generate foreign currency and strengthen the broader economy.
A step in Caledonia’s expansion drive came early this month when its wholly-owned subsidiary, Caledonia Holdings Zimbabwe (Private) Limited, signed an agreement with a consortium of Zimbabwean banks for facilities of up to US$150 million to finance development of the Bilboes Gold Project, where first gold production is targeted for the fourth quarter of 2028.
In a statement released last week, Caledonia chief executive officer Mr Mark Learmonth said the company was making progress on its growth strategy, with Bilboes remaining its immediate priority.
“While production at Blanket in the quarter was below our expectations, the strong gold price supported higher revenue and gross profit.
“We have a good understanding of the operational issues that affected production and we have taken clear steps to address them, including adding compressed-air capacity at the deeper levels and increasing processing capacity to recover gold temporarily retained in the plant.
“These initiatives will support improved production in Q4 2026 and greater consistency in 2027,” he said.
The Bilboes development is a major component of Caledonia’s expansion plans, with the US$150 million facility providing additional financial flexibility as the company advances construction activities and works on its broader project funding strategy.
Beyond Bilboes, the company is pursuing opportunities to increase production and extend the productive potential of its existing assets.
At Blanket Mine, its mineral resource base has grown, while work is also underway to improve processing capacity and unlock additional gold from underground and surface operations.
Mr Learmonth said the company’s growth ambitions extended beyond its immediate flagship development.
“We continue to make important progress on our growth strategy. Bilboes is our immediate growth priority, with first gold targeted for the fourth quarter of 2028, and we are maintaining momentum.
“The signing of the Interim Facilities Agreement enabling the Group to borrow up to US$150 million to fund the Bilboes Gold Project is an important step in providing additional financial flexibility as we advance construction activities and progress the broader project funding strategy,” he said.
At Blanket, measured and indicated mineral resources increased by 22 percent to 2,178 million ounces, contained in 17,7 million tonnes at an average grade of 3,83 grammes per tonne, strengthening the resource foundation of the operation.
The company is also advancing a heap leach trial at its K-Pits area, following the deposition of an initial 10 000 tonnes of oxide material in October.
Irrigation was planned for mid-November, with the first gold expected a few weeks after the process begins.
Successful trials could pave the way for full-scale operations in the first quarter of next year.
The planned expansion of Blanket’s metallurgical plant, expected to be completed in mid-2027, is intended to accommodate increased run-of-mine production, while the newly refurbished Lima plant is expected to process some of the additional material in the interim.
Mr Learmonth said the company was encouraged by the growing resource base and the opportunities emerging across its Zimbabwean portfolio.
“Beyond Bilboes, we continue to make encouraging progress across our wider portfolio. The increase in Blanket’s mineral resource base reinforces our confidence in the long-term potential of the mine and provides a stronger foundation for extending its life and evaluating opportunities for future production growth.
“The receipt of the EIA certificate in respect of large-scale oxide mining and heap leach operations at Blanket means this project may commence early in 2027, subject to the success of the heap leach trial, which is now in progress.
“Modifications to increase the capacity of Blanket’s metallurgical plant will be completed in the middle of 2027; in the interim, some of Blanket’s increased run-of-mine production is expected to be processed at the newly refurbished Lima plant.”
Caledonia’s expansion programme also includes Motapa, where the company has declared a maiden measured and indicated mineral resource of 379 000 ounces, alongside an inferred resource of 131 000 ounces.
Further exploration is continuing at the project.
The emerging resource at Motapa adds to the company’s portfolio of Zimbabwean gold assets and provides another platform for potential future development.
Mr Learmonth said the declaration marked an important milestone in establishing the project’s potential.
“At Motapa, the declaration of a maiden mineral resource is an important first step in demonstrating the scale and potential of what we believe could become another significant asset for the Group.
“Further exploration continues at Motapa. These achievements demonstrate the depth of our asset base in Zimbabwe and the opportunities we have to create value,” he said.
The expansion drive is unfolding against a strong gold-price environment.
The gold sector remains Zimbabwe’s biggest export commodity, generating about 52 percent of total export earnings.
Furthermore, the precious metal acts as the primary physical backing held in reserve by the Reserve Bank of Zimbabwe (RBZ) to maintain currency credibility, support exchange rate stability, generate foreign exchange liquidity and cushion the domestic economy against inflationary pressures.
The yellow metal also serves as a critical economic stabilisation anchor for the domestic currency, ZiG.
Official data from Zimbabwe’s exclusive buyer of the yellow metal, Fidelity Gold Refinery, indicate that in the first 10 months of 2026, gold deliveries reached 41,4 tonnes, driven largely by contributions from small-scale producers, positioning the country well on track to hit and potentially surpass its national annual production target of at least 50 tonnes this year, building on the 46,7 tonnes produced last year.
With 41,4 tonnes already secured by October, the gold sector is positioned to exceed the baseline target before the end of the year.
Between January and October 2026, artisanal and small-scale miners delivered 30,05 tonnes, accounting for 72,59 percent of total output.
Primary large-scale producers delivered 11,34 tonnes over the same period, representing about 27,41 percent share.
Deliveries improved steadily across the year, rising from 9,31 tonnes in the first quarter to 12,08 tonnes in the second quarter and 14,48 tonnes in the third quarter.
In October 2026, monthly deliveries totalled 5,52 tonnes, marking the highest single-month total recorded during the 10 months.
Small-scale miners accounted for 4,27 tonnes, or 77,44 percent, of total October deliveries, while primary mining houses contributed 1,24 tonnes, or 22,56 percent.
The Government aims to scale broader mineral export revenues through accelerated mineral exploitation, formalisation of artisanal operations and enhanced processing infrastructure.
