Caledonia Mining Invests $132 Million in Zimbabwe’s Bilboes Gold Project to Boost Production
Caledonia Mining Corporation, a Canadian miner, has announced plans to invest $132 million in 2026 to advance development of its Bilboes gold project in Zimbabwe, set to become the country’s largest gold mine. The move comes as producers capitalise on record global gold prices.
The investment is part of a broader $162.5 million capital expenditure programme for 2026, subject to board approval and funding availability.
Caledonia, which currently operates the 80,000-ounce-per-year Blanket Mine, estimates the total cost of the Bilboes project at $584 million.
The company expects first production in late 2028, ramping up to a steady-state output of approximately 200,000 ounces annually from 2029, sustained for at least a decade.
The project will be funded through a mix of non-recourse senior debt, cash flows from existing operations, and alternative structures such as streaming agreements, under which investors provide upfront capital in exchange for future metal deliveries.
Policy Reforms Support Expansion
Development has also been boosted by a recent policy reversal by the Government of Zimbabwe, which scrapped plans to double gold royalties and alter the tax treatment of capital expenditure—moves that had previously unsettled miners.
Mining is Zimbabwe’s largest export earner, generating over 60% of foreign exchange from gold, platinum, and lithium. However, years of weak regulation have left an environmental impact, with both artisanal and large-scale mining contributing to polluted waterways, abandoned pits, and land degradation, particularly in Manicaland, Midlands, and Mashonaland West.
