- Caledonia Mining Corporation sold its 12.2 MW solar plant to CrossBoundary Energy Holdings (CBE) for $22.35 million
- The sale allows Caledonia to concentrate on its primary gold mining operations and reallocate resources effectively
- The transaction provides a profit on the plant's construction cost and improves Caledonia’s financial position
Harare-Caledonia Mining Corporation has sold its 12.2 MW solar plant to CrossBoundary Energy Holdings (CBE) for $22.35 million in cash according to the latest circular by the company.
This move is to allow the company to focus on its primary gold mining business and enable the reallocation of capital for growth.
The solar plant is owned by Caledonia Mining Services (CMS) to power the Blanket Mine, and will continue supplying renewable energy to the mine under an exclusive power purchase agreement, ensuring operational continuity while freeing capital for Caledonia’s core gold mining ambitions.
‘’ Under the terms of the sale, the solar plant will continue to provide Blanket Mine with power under an exclusive power purchase agreement, ensuring a reliable renewable energy source for the mine,'' the company said.
Caledonia, a Jersey-based firm listed on the NYSE American, has been a key player in Zimbabwe’s gold mining sector through Blanket Mine, a high-grade operation in Matabeleland South.
The CMS solar plant, commissioned in February 2023, was built to address Zimbabwe’s chronic power shortages and rising energy costs, which have long plagued the mining industry.
Funded by a $13 million share offering in the USA in 2020, the $14.3 million facility has since generated over 57,722MWh, covering roughly 20% of Blanket Mine’s daily electricity needs.
The sale reflects a broader trend among African miners to divest non-core assets, particularly energy infrastructure, to specialized providers like CBE, a leader in renewable energy solutions across the continent.
The transaction delivers a tidy profit on the plant’s construction cost and transforms Caledonia’s financial position.
On 9 April 2025, the company’s consolidated net debt stood at $3.8 million, down from $8.7 million at year-end 2024. With the $22.35 million cash injection, Caledonia’s pro forma net cash balance now sits at $18.6 million, providing ample liquidity to fuel exploration, production enhancements, and potential expansion at Blanket Mine or beyond.
“This sale strengthens our cash position while retaining clean energy access, allowing us to double down on gold mining,” said CEO Mark Learmonth, highlighting the deal’s alignment with long-term growth.
For CBE, the acquisition bolsters its footprint in African mining, a sector grappling with energy reliability and cost pressures.
The power purchase agreement ensures Blanket Mine benefits from stable, renewable energy without the capital and operational burden of plant ownership a model gaining traction as miners seek to balance sustainability with profitability.
For Zimbabwe, where power outages have hampered industrial output, such partnerships highlight the growing role of private renewable energy in supporting economic stability.
Caledonia’s move comes at a time when Zimbabwe’s mining sector faces both opportunity and uncertainty, with gold prices buoyant but infrastructure and currency challenges persistent.
By divesting the solar plant, Caledonia not only secures financial flexibility but also reinforces its commitment to Blanket Mine, which remains a cornerstone of its portfolio.
The cash windfall positions the company to explore new reserves, upgrade equipment, or weather market volatility, all while maintaining its environmental credentials through the retained solar power agreement.
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