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Highlights
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Caledonia Mining Corporation PLC sells its solar plant in Zimbabwe for $22.35 million (£16.72 million).
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CrossBoundary Energy Holdings will acquire the 12.2 megawatt solar facility, ensuring continued power supply to Caledonia’s Blanket Mine.
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Profits from the sale will be reinvested into gold mining and exploration projects.
Caledonia Mining Corporation PLC {LSE:CMCL} has announced the successful sale of its solar plant in Zimbabwe for $22.35 million (£16.72 million). The acquisition will be made by CrossBoundary Energy Holdings (CBE), which will take over Caledonia Mining Services Ltd, the subsidiary that operates the 12.2 megawatt solar facility.
The solar plant, constructed at a cost of $14.3 million, is expected to yield significant profit for Caledonia at a crucial time in the company's growth. The proceeds from this sale are set to be reinvested into various gold mining and exploration initiatives.
An exclusive offtake agreement ensures that the solar plant will continue supplying renewable energy to Caledonia’s Blanket Mine, meeting approximately 20% of its electricity requirements. CEO Mark Learmonth highlighted the strategic importance of the sale, noting that it not only generates immediate profit but also establishes a partnership with CBE, which possesses extensive experience in managing renewable energy projects.
Furthermore, CBE plans to expand the solar plant, which commenced operations in February 2023, to enhance energy delivery to the Blanket Mine. Caledonia Mining also indicated that renewable energy solutions will be explored for its other developments, given the significant reduction in diesel generator reliance at the Blanket Mine site. This move aligns with broader industry trends toward sustainable energy solutions in mining operations.
