Caledonia Mining Corporation plans to spend $132m (about R2.17bn) this year to launch development of what, once operational, will be Zimbabwe\u2019s largest gold mine, the company announced on Wednesday. <\/p>\n
Miners are riding a wave of record bullion prices to expand output. Spot gold prices hit another record high of $4,639.48 an ounce early on Wednesday, fuelled by escalating tensions in Iran<\/a>, concern about the Federal Reserve\u2019s autonomy<\/a> and softer inflation readings that boosted rate cut bets.<\/p>\n Caledonia said in a production update that the planned spending, part of a $162.5m total capital expenditure programme for 2026, was subject to board approval and availability of funding. <\/p>\n Caledonia, which already operates the 80,000-ounce-per-year Blanket mine in Zimbabwe, plans to develop the Bilboes mine at a projected total capital cost of $584m. <\/p>\n Production from the new mine is expected to begin in late 2028, with a steady-state annual output of 200,000 ounces anticipated from 2029 for an initial period of 10 years.<\/p>\n The company has said it plans to fund the Bilboes project through a mix of non-recourse senior debt and contributions from existing operations, as well as specialised financing methods such as streaming, where investors provide cash in return for future metal supply.<\/p>\n Caledonia\u2019s expansion plans received a boost last month when Zimbabwe\u2019s government reversed plans to double the gold royalty rate and change the tax treatment for capital expenditure.<\/p>\n Reuters<\/p>\n","protected":false},"excerpt":{"rendered":"Caledonia Mining Corporation plans to spend $132m (about R2.17bn) this year to launch development of what, once operational,…\n","protected":false},"author":2,"featured_media":22956,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[60],"tags":[14154,14152,4925,4923,14151,14156,14155,8807,106,14153],"class_list":{"0":"post-22955","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-zimbabwe","8":"tag-bilboes-mine-development","9":"tag-blanket-mine","10":"tag-caledonia","11":"tag-caledonia-mining-corporation","12":"tag-gold","13":"tag-gold-market-trends","14":"tag-gold-production-expansion","15":"tag-mining","16":"tag-zimbabwe","17":"tag-zimbabwe-gold-mine"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts\/22955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/comments?post=22955"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts\/22955\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/media\/22956"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/media?parent=22955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/categories?post=22955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/tags?post=22955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}