Caledonia Mining Corporation has unveiled plans to invest $132 million in 2026 to advance development of the Bilboes gold project, positioning it to become Zimbabwe’s largest gold mine once operational. The planned spending forms the bulk of the miner’s $162.5 million capital expenditure programme for the year, as reported by Reuters, underscoring Caledonia’s long-term commitment to Zimbabwe’s mining sector.
The investment will support early construction works at Bilboes, a project with an estimated total capital cost of $584 million. Caledonia already operates the Blanket mine, one of Zimbabwe’s top gold producers, and views Bilboes as a transformational asset that will significantly lift its production profile, according to details shared by the company and cited by MarketScreener.
Once completed, Bilboes is expected to begin production in late 2028, with output forecast to reach around 200,000 ounces of gold annually from 2029 over an initial ten year mine life. Financing for the project is expected to come from a combination of non recourse senior debt, cash flows from existing operations and alternative funding structures such as gold streaming, Reuters reported.
Caledonia’s expansion plans have been supported by recent policy adjustments in Zimbabwe’s mining sector, including the government’s decision to reverse proposed increases in gold royalties and changes to capital expenditure tax rules. These measures have helped stabilize the investment climate and improve project economics for miners, industry analysts told Reuters, encouraging renewed capital inflows into the country’s gold industry.
