Caledonia Mining Corporation has announced plans to invest about $132 million in 2026 to begin development of what is expected to become Zimbabwe’s largest gold mine, as mining companies take advantage of record gold prices.
The spending forms part of a broader $162.5 million capital programme planned for the year, subject to board approval and funding conditions, according to Reuters.
Caledonia, which currently operates the Blanket Mine, producing about 80,000 ounces of gold per year, is pushing ahead with development of the Bilboes gold project. The project is estimated to cost $584 million in total.
First gold production is expected in late 2028, with output projected to rise to around 200,000 ounces a year from 2029, sustaining production at that level for at least ten years. Once fully operational, Bilboes would significantly increase Zimbabwe’s gold output and strengthen the country’s mining sector.
The company plans to finance the project through a mix of non-recourse senior debt, cash generated from its existing operations, and alternative funding structures such as gold streaming agreements, where investors provide upfront capital in exchange for future gold deliveries.
The expansion has been helped by a recent policy shift by the Zimbabwean government, which reversed proposed plans to double gold royalty rates and change how capital expenditure is taxed. The move has been welcomed by investors as a sign of improved policy stability.
Mining remains Zimbabwe’s largest export sector, accounting for more than 60% of foreign-currency earnings, driven mainly by gold, platinum and lithium. However, the industry continues to face environmental challenges, with years of weak regulation leaving polluted rivers, abandoned mine shafts and degraded land across parts of Manicaland, Midlands and Mashonaland West.
