Caledonia Mining Corporation said it plans to spend about $132 million this year to kick-start development of what is expected to become Zimbabwe’s largest gold mine, as producers capitalise on record bullion prices.

The investment forms part of a broader $162.5 million capital expenditure programme for 2026, subject to board approval and funding availability, according to Reuters.

Caledonia, which currently operates the 80,000-ounce-per-year Blanket mine, is advancing the Bilboes gold project, a development estimated to cost $584 million in total.

The company expects first production in late 2028, ramping up to a steady-state output of around 200,000 ounces annually from 2029 for at least a decade.

The project will be financed through a combination of non-recourse senior debt, cash flows from existing operations and alternative structures such as streaming agreements, under which investors provide upfront funding in exchange for future metal deliveries.

The expansion has also been helped by a recent policy reversal by Zimbabwe’s government, which scrapped plans to double gold royalty rates and alter the tax treatment of capital expenditure.

Mining is Zimbabwe’s biggest export earner, generating more than 60% of the country’s foreign exchange from gold, platinum and lithium.

Source: Africabusinessinsider