Caledonia Mining Corporation Plc (NYSE: CMCL) has sold its 12.2 MWac solar power plant at Zimbabwe’s Blanket Mine to CrossBoundary Energy for $22.35 million, the company announced recently.
Caledonia CEO Mark Learmonth said strategic divestment allows Caledonia to unlock capital while retaining long-term renewable energy access for its flagship gold operation.
“This transaction strengthens our balance sheet and allows reinvestment in gold production growth, including the Bilboes oxide project and Blanket’s expansion,” said Learmonth.
Executed through Caledonia’s Zimbabwe subsidiary, the deal follows a competitive bidding process managed by IH Advisory.
CrossBoundary Energy, a leading Africa-focused renewable energy investor, now owns the solar facility but will continue supplying Blanket Mine via an exclusive 25-year Power Purchase Agreement.
“Affordable, reliable solar power is critical for African mines to cut costs and emissions. This model can scale across the continent,” said CrossBoundary Managing Partner Matthew Tilleard.
The plant—commissioned in February 2023 at a $14.3 million build cost—has generated over 57,700 MWh since inception, offsetting Zimbabwe’s erratic grid supply and covering 20% of the mine’s daily energy demand.
Proceeds from the sale reduced Caledonia’s net debt by 56%, slashing liabilities from $8.7 million (December 2024) to $3.8 million as of April 9, 2025.
The sale reflects a rising trend among Zimbabwean miners to monetize non-core infrastructure while advancing sustainability goals.
Zimbabwe’s mining sector, which contributes over 80% of national export earnings, faces persistent power shortages, driving demand for embedded solar solutions.
Caledonia retains operational control of Blanket Mine, with the solar PPA ensuring stable energy pricing and insulation from inflationary grid tariffs. The firm produced 75,416 ounces of gold in 2024 and targets 92,000–100,000 ounces annually by 2026.
Caledonia holds a 64% stake in Blanket Mine, with the remainder owned by Zimbabwean entities.
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