16th Oct 2019 11:07
(Alliance News) - Caledonia Mining Corp PLC is exploring using solar power in Zimbabwe, it said Wednesday, as regular electricity supply improves.
Caledonia said power supply to the Blanket gold mine has "improved substantially" in late August and September, with a new pricing schedule for miners helping.
The miner did, however, note "recent media commentary" regarding electricity supply and pricing in Zimbabwe as a whole, but said operations at Blanket remain steady.
The mine experienced blackouts in July and August, which was partially covered by generators. However, Caledonia is now installing extra generators to fully cover the mine in the event of further electricity supply problems.
The firm is also exploring installing solar power at the time, which would both reduce dependency on electricity and cut costs. Engineering is underway, and Caledonia is seeking regulatory approval and also preparing tenders.
Chief Executive Steve Curtis said: "The disruptions we experienced early in the third-quarter necessitated a larger than normal utilisation of our diesel generator back-up. We have been pleased by the rapid and decisive response from both government and industry which has resulted in the alleviation of the supply shortages and a more stable US dollar based pricing structure.
"The arrival of an additional six megawatts of back-up diesel generators on site is also a positive development for our business and will ensure future reliability in the face of a potentially difficult electricity supply situation in the southern African region in the medium to long-term."
"Moreover, Caledonia is at an advanced stage in the evaluation of a solar photovoltaic plant which could supply Blanket's baseload demand during peak sunlight hours. Engagements are commencing with potential equipment suppliers and regulatory authorities and the engineering and financial evaluation work on this project is well advanced," he added.
Shares were untraded in London on Wednesday morning, last quoted at 562.00 pence each.
By George Collard; [email protected]
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