Gold mining firm, Caledonia Mining Corporation has reaffirmed commitment to a $4 million investment towards exploration and metallurgical test work to its satellite properties.
With an impressive gold production figures at 16400 ounces during the quarter ending December 31, 2017, the firm is buoyant of posting further record production figures spurred by an improved operating environment in the country.
The mining conglomerate is anticipating a further boost of $5 million on its income for its Gwanda based unit, Blanket Mine, following an announcement by the Reserve Bank of Zimbabwe that it had quadrupled the export credit incentive for gold miners.
The firm’s CEO, Mr Steve Curtis commented in a press release dated 4 April that the review of the export credit incentive from 2.5 percent to 10 percent is a further significant step by the Zimbabwean government to boost investment and production in the gold mining sector.
This latest move by the apex bank further cements the massive strides by the government to review the indigenisation policy which has aided in restoring confidence into the country’s mining sector which already has seen mega deals being sealed for lithium and the recent $4.2 billion deal in platinum production.
Caledonia Mining Corporation is now eyeing an output of 80 000 ounces of gold at Blanket within the next three years up from 59 000 ounces, with indications that the firm will continue to explore further areas of investment opportunities to grow production as the operating environment improves.