Emmerson Njanjamangezi, Group Features Editor 
CALEDONIA Mining Corporation (Caledonia)’s capital expenditure at its bullion asset ― Blanket Mine ― is now expected to be US$27 million in 2022, due to the urgent need to remedy the poor electricity supply and upgrade workers’ dwellings.
At peak capacity, Zesa Holdings (Zesa) produces less than 70 percent of the national demand for power and the state-utility company’s failure to cover the deficit with exports at times, creates considerable supply interruptions.
Steve Curtis, chief executive
“Due to, inter alia, historic delays in the completion of the Central Shaft arising from Covid-19, the need to remediate the poor electricity supply from the Zesa, and an upgrade to the workers’ village to accommodate a larger workforce, capital expenditure at Blanket in 2022 is now expected to be $27 million,” chief executive Steve Curtis said last week in a statement accompanying the mining firm’s third quarter performance report.
The company has previously installed four 2,5MW diesel generators, which allow the mine and all of the metallurgical operations to run normally during any interruption to the main electricity supply.
Blanket has also entered into an uninterruptible power supply agreement with Zesa and Caledonia says the frequency of power interruptions have since diminished to an acceptable level.
Revenue in the quarter was 32 percent higher than in the comparable period last year, due to a 42 percent increase in the quantity of gold produced and sold offset by a seven percent decrease in the average realised gold price.
Caledonia reported that net cash generated by operations in the third quarter was US$7,1 million, compared to US$5,3 million in third-quarter 2020.
Curtis said the increase was due to higher gross profit (due to increased production and lower costs per ounce), offset by increased working capital.
Curtis also reported that Caledonia has completed the purchase of the mining claims at Maligreen in the Midlands while evaluations at Connemara North with the view to purchase are ongoing.
“This transaction is an important next step as Caledonia pursues its strategy to become a multi-asset gold producer in Zimbabwe, one of the last gold frontiers in Africa,” he said.
The Maligreen project, a property situated in the Gweru mining district, from Pan African Mining, was purchased for a total cash consideration of US$4 million.
