Caledonia is looking to buy out partners in Zimbabwe liberalizes mining

Zimbabwe-based gold miner Caledonia wants to buy its local partners, as it capitalisim liberalization of the laws regulating the mining industry.

AIM-listed Caledonia “actively cooperating” with the two indigenous groups that own shares in its blanket gold mine, as it looks to raise their holdings back above 49pc.

Steve Curtis, chief Executive officer, said that the gold sector is not subject to the strict regulations imposed by the previous President Robert Mugabe, which States that foreign companies need to sell their land below 50pcs to give the indigenous population a boost.

“We had discussions with our partners from indigenous peoples and said that we are a ready buyer,” he said. “We have legal regulation blanket, although we 49pc shareholder. But visually it looks very strange for our shareholders,” he added.

President Emmerson Mnangagwa, who took over from Mugabe in November, loosened ownership requirements of the mining sector to attract much-needed foreign investment.

The President Of Zimbabwe Mr Emmerson Mnangagwa

Mr. Curtis said was “a significant change in mood” with Mugabe was overthrown, the government sought to promote and to realize that he is “open for business”. Zimbabwe needs to hold elections in July.

Caledonia, one of the few listed companies with mines in Zimbabwe continues to invest despite the political turmoil. It has launched a five-year, $70 and $ to expand the program of its blanket mine, which will see it sink a new shaft and build a new gold mine under the existing 2021.

In the first quarter of this year, production of Caledonia rose 1pc, while net profit jumped amp; 35pc of $3.2 million, helped by higher gold prices.

Analysts at SP angel said: “it is encouraging to hear that to improve the climate for investment in mining in Zimbabwe and that the investment programme at blanket mine remains on track.”

Shares of Caledonia grew by 0.7 PC 690p.

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