Caledonia Mining Corporation plans to spend $132 million this year to launch development of what, once operational, will be Zimbabwe’s largest gold mine, the company announced this Wednesday.<\/p>\n
<\/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 this Wednesday, fuelled by escalating tensions in Iran, concern over the Federal Reserve’s autonomy and softer inflation readings that boosted rate cut bets.<\/p>\n
<\/p>\n
Caledonia said in a production update that the planned spending, part of a $162.5 million total capital expenditure programme for 2026, was subject to board approval and availability of funding.<\/p>\n
<\/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 $584 million.<\/p>\n
<\/p>\n
Production from the new mine is expected to begin in late 2028, with steady-state annual output of 200 000 ounces anticipated from 2029 for an initial period of 10 years.<\/p>\n
<\/p>\n
The company has said it plans to fund the Bilboes project through a mix of non-recourse senior debt, 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
<\/p>\n
Caledonia’s expansion plans received a boost last month when Zimbabwe’s government reversed plans to double the gold royalty rate and change the tax treatment for capital expenditure.<\/p>\n
<\/p>\n
<\/p>\n
<\/p>\n
–Reuters–<\/p>\n","protected":false},"featured_media":22412,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-22411","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"Caledonia Mining Corporation plans to spend $132 million this year","published_date":"2026-01-14 15:33:32","news_description":"Caledonia Mining Corporation plans to spend $132 million this year","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/22411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/22411\/revisions"}],"predecessor-version":[{"id":25719,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/22411\/revisions\/25719"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/22412"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=22411"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=22411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}