CrossBoundary Energy’s (CBE) recent acquisition of Caledonia Mining Corporation’s 13,9 megawatt peak (MWp) solar plant is expected to cut electricity operating costs for the miner, NewsDay Business heard this week.
MWp is a unit of measurement for the output of power from sources like solar or wind where the output may vary, representing the maximum theoretical power a system can produce under ideal conditions.
The solar plant provides 21% of Blanket Gold Mine’s power needs, the main gold mine of the Jersey-domiciled Caledonia.
Electricity costs at Blanket Gold Mine have been on a steady rise since 2022 when they totalled US$9,63 million. The costs rose to US$13,49 million in 2023 and US$14,87 million last year.
“We recently acquired Caledonia Mining’s Blanket Gold Mine renewable energy plant in Zimbabwe — a 13,9 MWp solar array that provides at least 21% of the mine’s electricity. CBE’s purchase will free up Caledonia Mining Corporation’s capital expansion on core mining activity. The mine will continue to purchase the energy generated by the plant,” CBE said in a statement.
“The transaction proves that it is still financially compelling to switch to a PPA [power purchase agreement] structure, even for clients that previously self-financed an asset. Zero CapEx energy solutions are increasingly relevant for mines as they optimise their finances to expand and grow their operations. Through procuring energy directly from CrossBoundary Energy, the company will also save significantly on operating costs associated with electricity.”
Caledonia recently announced the successful completion of the sale of its Zimbabwean subsidiary, Caledonia Mining Services (Private) Limited, which owns the solar plant, to CBE for a pre-tax consideration of US$22,35 million payable in cash.
Under the terms of the sale, the solar plant will continue to provide Blanket Gold Mine with power under an exclusive PPA, ensuring a reliable renewable energy source for the mine.
- Zimplats solar plant to come on board next month
- Hippo Valley seeks solar energy supply from partners
- Caledonia electricity costs to drop: CBE
Keep Reading
Since its commissioning in February 2023, the solar plant has generated over
57 722 megawatt-hours of power.
“Blanket Gold Mine received an unreliable power supply, which became a significant production challenge. The mine experienced interruptions, as well as surges and dips, from its grid power supply, and required a solution that would be more stable and not cause any damage to electrical equipment,” CBE said.
“In response, Caledonia developed a 13,9 MW solar plant, operational since February 2023. CrossBoundary Energy acquired the solar facility in September 2024 as an asset in its expanding African portfolio, relieving Caledonia Mining Services of the ongoing maintenance and freeing up capital to focus on core mining activity.”
According to its website, CBE offers fully financed, customised clean energy solutions for businesses — a long-term energy strategy that is financially and environmentally sustainable.
CBE managing partner Matthew Tilleard said the firm’s mission was to provide affordable and clean power solutions to underserved markets.
“We achieve this by deploying capital into energy projects that enable businesses to focus on their core operations,” he said.
“Our partnership with Caledonia demonstrates the efficacy of this model for the mining sector, benefiting the mine’s operations and ultimately enabling sustainable mining. We look forward to pursuing these acquisitions with miners across the continent.”
