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Prosper Ndlovu, Business Editor

VICTORIA Falls Stock Exchange (VFEX)-listed company, Caledonia Mining Corporation Plc, yesterday started generating its own power at its Blanket Mine unit in Gwanda, Matabeleland South, in a giant leap towards energy self-sufficiency, following successful completion of a 12,2MW solar project.

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. 

Having recently grown to become one of the top primary gold producers in Zimbabwe riding mainly on the milestone brought about by increased capacity after the commissioning of Central Shaft, this has piled pressure on the company’s energy consumption levels.

The new Central Shaft project began in August 2015 and was completed in first quarter 2021 under a multi-million-dollar investment. It goes down to about 1 200 metres from surface, providing access for horizontal development in two directions on two levels below 750 metres, thereby enhancing increased production and extending the life of mine. Building on these capital investments, Caledonia expects to boost its production capacity to 80 000 ounces per year starting 2022 while reducing costs and capitalising on economies of scale and operational efficiencies arising from the Central Shaft. In order to address the energy challenge, the company started constructing the 12.2 MW solar plant late in 2021 in response to economic, environmental and logistical challenges of running large-scale diesel generators for extended periods.

“I am delighted that the solar plant is connected to the Blanket grid and from today (yesterday) Blanket will start to receive some of its energy directly from solar,” Caledonia chief executive officer, Mr Mark Learmonth, said.

“With 21 per cent of Blanket’s on-mine costs relating to energy usage, this solar plant is a very important project for the company as it will improve the quality and security of Blanket’s electricity supply and provide environmental benefits through cleaner energy. 

“The solar power will displace more expensive power from the grid and from the diesel generators and is expected to reduce Caledonia’s consolidated cost per ounce of gold produced by approximately $37,” he said.

While Blanket Mine has continued to receive its power from the national utility, Zesa, Caledonia said in recent years this supply has been subject to severe load-shedding and unstable power, which has economic and safety implications for an underground mine such as Blanket. 

“During outages or low voltages, the power supply at Blanket had to be supplemented by standby diesel generators to enable uninterrupted mining and capital operations,” said the company. 

“Diesel-generated electricity is expensive, subject to an unpredictable supply of diesel and creates an unfavourable environmental footprint.

“As from today, the solar plant will provide power to Blanket. In due course it is expected that the solar plant will provide approximately 27 per cent of Blanket’s average daily electricity demand.” 

Through this project, the Gwanda-based mine has taken the lead in completing the solar project in record time, setting the pace for several top companies such as Mimosa Mine, Pretoria Portland Cement (PPC) Zimbabwe, which have also proposed rolling out their own solar projects.

Latest reports already indicate that due to improved operating capacity and efficiencies, the gold mining group’s revenue grew by 21 percent to US$107,9 million for the nine months period ended 30 September 2022 with gross profit spiking by 26,1 percent when compared to the previous year.

The New York Stock Exchange and AIM-listed mining group is one of the few giant foreign owned companies to boldly express their confidence in Zimbabwe as a favourable investment destination, defying the continued imposition of sanctions on Zimbabwe and negative reporting by some hostile international media outlets.

This has seen the company grabbing available investment opportunities including acquiring new assets and listing on the foreign currency-denominated VFEX last December where it has attracted overwhelming investor interest. Caledonia continues to raise millions of dollars from the bourse to finance its massive capitalisation projects. Part of the funding raised from VFEX has been channeled towards the 12,2MW solar project.