from DANAI MWARUMBWA in Harare, Zimbabwe
Zimbabwe Bureau
HARARE, (CAJ News) – CALEDONIA Mining Corporation has sold its Zimbabwean subsidiary to Cross Boundary Energy Holdings for US$22,35 million.
Caledonia Mining Service (CMS) is the subsidiary, which operates the 12,2MWac solar plant that supplies power to Blanket Mine.
Under the terms of the sale, the solar plant will continue to provide Blanket Mine with power under an exclusive power purchase agreement, ensuring a reliable renewable energy source for the mine.
Mark Learmonth, Chief Executive Officer of Caledonia, commented, “We are pleased to have completed the sale of the solar plant, strengthening our cash position and enabling us to redeploy capital towards our core gold mining and expansion operations.”
By selling the plant, Caledonia realises a profit on the $14,3 million construction cost. It retains the exclusive energy off-take agreement, ensuring that approximately 20 percent of Blanket Mine’s daily electricity needs continue to be met by renewable energy.
Matthew Tilleard, Managing Partner at CrossBoundary Energy, said, “Energy provision is an expensive challenge for the mining sector in Africa.”
The acquisition of Blanket Mine’s solar PV facility is part of Cross Boundary Energy’s ongoing commitment to providing the best energy solutions for the sector.
“Through a power purchase agreement, Blanket Mine will continue utilising the benefits of distributed renewable power, whilst freeing up capital for its value-generating mining activities,” Tilleard said.
– CAJ News