JERSEY miner, Caledonia Mining Corporation has generated an economic value of US$146 million through its mining operations in Zimbabwe, it has been revealed.
Caledonia is a Zimbabwe-focused exploration, development, and mining corporation that owns the local gold-producing Blanket Mine (Blanket), Bilboes Mine, and the Motapa and Maligreen gold mining claims.
In its newly released Mining ESG Report 2024, the miner noted that contributing to Zimbabwe’s economy went beyond hiring, procurement, and ownership.
The report revealed that the US$146 million came from operating costs, employee benefits, employee wages, payments of capital, social investment, community investment, infrastructure development, taxes, royalties, and economic value retained.
“We make significant contributions through taxes, royalties, and regulatory payments. Our commitment to transparent financial disclosure is evident in the reports we submit under the UK Reports on Payments to Governments Regulations,” Caledonia said in the report.
“These reports are publicly available through UK Companies House and on our website, and they are included in our quarterly and annual financial reports on EDGAR (US Securities and Exchange Commission).
“Our payments to the Zimbabwean government include income tax on Blanket Mine’s profits, PAYE (income tax on employee wages and benefits), 5% gold royalty payments, withholding tax on cross-border transactions, revenues from gold refining arrangements, dividends paid to NIEEF for its 16% stake in Blanket, and various customs, duties, levies, and charges.”
Caledonia said by ensuring fair, transparent, and substantial contributions to Zimbabwe’s fiscal system, it supported national development and economic stability.
- Record breaker Mpofu revisits difficult upbringing
- Record breaker Mpofu revisits difficult upbringing
- Caledonia profits up 16% after record production
- Power crisis pushes Blanket Mine into fresh costs
Keep Reading
“Our total payments to the government in 2024 were US$23,745 million (US$11,9 million to Zimbabwean government excluding royalties of US$9,081 million),” Caledonia added.
Caledonia was the first Zimbabwean gold mining company to comply with Zimbabwe’s indigenisation laws, ensuring meaningful local ownership in the sector.
“At Blanket Mine, 51% ownership was transferred to Zimbabwean entities, reflecting a strong commitment to empowering local stakeholders and fostering economic development within the community,” the miner said.
“The ownership structure benefits various segments of the local population.
“An employee trust, Blanket Employee Trust Services (BETS) holds a 10% stake, providing workers with a direct interest in the success of the mine and aligning their interests with the company’s long-term goals.”
The miner added that with BETS represented on Blanket’s board, employees gained a say in shaping that success, which not only incentivises productivity and loyalty but also ensured that employees share in the financial rewards of the mine’s operations.
“Another 10% is owned by the local Gwanda Community Share Ownership Trust, which is dedicated to supporting community development projects,” Caledonia said.
“This trust funds initiatives that improve local infrastructure, education, healthcare, and other essential services, thereby enhancing the quality of life for residents in the surrounding areas.”
The National Indigenisation and Economic Empowerment Fund holds a 16% stake, representing the government’s commitment to promoting economic empowerment and ensuring that the benefits of mining are widely distributed across the nation.
“This fund supports various programmes aimed at fostering entrepreneurship, creating jobs, and stimulating economic growth,” Caledonia said.
“Lastly, a 15% stake was initially held by a Zimbabwean investor group, which has since been repurchased in exchange for shares in the company, so the investor group now has an interest in Caledonia rather than just Blanket Mine.
“Furthermore, approximately 22% of Caledonia’s shares are held by Zimbabwean investors, a figure that has grown since our listing on the Victoria Falls Stock Exchange in 2021.”
Caledonia revealed that it had played a key role in developing Zimbabwe’s debt capital markets, issuing US$11,5 million in bonds to local institutional investors.
Caledonia aims to sweat Blanket, its best producing mine, to build cash reserves of up to US$60 million by year-end for future commitments and exploration efforts.
