Caledonia Mining Corporation Plc, a profitable and high-growth gold producer, has contracted with international renewable energy provider Voltalia for the construction of a 12MW solar power plant at its primary asset, the Blanket Gold Mine in Zimbabwe.
On successful commissioning, expected in the last quarter of 2021, the solar plant will provide about 27% of the mine’s total electricity demand.
The solar plant is a strategic investment to safeguard from any further deterioration in the quality of grid power that could force Caledonia to resort to additional diesel-generated energy for its operations.
The plant will also reduce the mine’s ecological footprint, or the impact it has on the environment.
In September, Caledonia raised US$13 million through an “At the Market” sale of 597,963 shares to pay for the construction of the solar plant at the Blanket Mine.
The issue of the shares would have a dilutive effect on the company’s equity. However, despite that, the solar project will yield a small return to shareholders.
Read the release from Caledonia Mining HERE.
Image Source: Caledonia Mining Corporation