CrossBoundary Energy Holdings (CBE) has finalized the acquisition of a 12.2-megawatt solar facility in Zimbabwe from Caledonia Mining Corporation for a cash consideration of US$22.35 million. The deal transfers ownership of Caledonia Mining Services Ltd, the subsidiary operating the plant, to CBE, a specialist in renewable energy projects for commercial and industrial clients across Africa.
CBE Acquires 12.2MW Solar Plant in Zimbabwe: A Strategic Move
The transaction represents a profitable venture for Caledonia, which initially developed the solar plant for US$14.3 million. Commissioned in February 2023, the facility was a strategic investment designed to provide stable electricity to its Blanket gold mine amid Zimbabwe’s unreliable national grid. The sale allows Caledonia to realize a significant profit and redirect capital towards its core gold mining and exploration activities.
As part of the acquisition, the two companies have entered into an exclusive offtake agreement. This arrangement ensures that the Blanket Mine will continue to receive a consistent supply of renewable energy, with the solar plant providing approximately 20% of the mine’s total electricity needs. This continued power supply is crucial for reducing the mine’s dependence on costly diesel generators.
Expert Management and Future Expansion
Caledonia’s Chief Executive, Mark Learmonth, highlighted the strategic value of the partnership. “Whilst the sale will generate an immediate profit for the company, more importantly, we have identified an experienced partner in CBE, which brings vast expertise in delivering and running renewable energy projects,” he stated.
CrossBoundary Energy is also expected to oversee an expansion of the solar facility to further meet the energy demands of the Blanket Mine. By entrusting the plant’s operation to a specialized firm, Caledonia secures a reliable source of power while focusing its resources on boosting its mining output. The mining company reported record gold production of 21,120 ounces in the third quarter of 2023 and is on track to meet its annual guidance of 75,000 to 80,000 ounces.
Sources
- Blanket Gold Mine – CrossBoundary Energy
- Search results for ‘Zimbabwe Mining’ – Equity Axis
- Caledonia’s energy deal: Build a solar plant for US$14M, flip it for …
- Press Releases – ARCH Emerging Markets Partners
- Caledonia sells Zimbabwe solar plant – Mining Weekly
- SP Angel Morning View -Today’s Market View, Tuesday 1st October …
