Business News

AFDB looks forward to funding a $250 million gold mine in Zimbabwe 

The African Development Bank (AFDB) has shown great interest in funding Caledonia Mining Corporation’s planned $250 million gold mine in Zimbabwe.

The information was relayed by Mark Learmonth the company’s CEO.

According to Reuters, Caledonia which already owns a blanket gold mine in Zimbabwe is conducting a feasibility study with the aim of constructing a new mine at Bilboes with a capacity to produce 170,000 ounces of gold annually, making it potentially the country’s biggest gold mine.

The company is in preliminary talks with the “most likely lenders”, Learmonth said during a conference call.

The CEO explained that debt would form bulk of the funding for the project.

The CEO further explained that as soon as funding is in place which might take a year, construction of the mine should be done in two years.

Before the promise of this new funding, Caledonia’s operating profit plunged 62% to $15.18 million in 2023, from $40.28 million a year earlier, mainly due to higher administrative and production costs.

Caledonia backed by global financial powerhouse Blackrock and Cape Town-based fund manager Allan Gray is one of the few foreign investors in Zimbabwe braving its tough economy market plagued by foreign exchange shortages and hyperinflation.