Caledonia Mining Corporation has said no amendments will be made to its Bilboes Gold Project Technical Report Summary following the passing of Zimbabwe’s Finance Act Number 7 of 2025, which legalises proposals in the country’s 2026 National Budget.
Gwanda-based Blanket Mine is the flagship asset of Caledonia Mining Corporation and a key contributor to the country’s economy.
The Bilboes project is strategically important to Caledonia as it is the cornerstone of the company’s vision to transform from a single-asset producer into a multi-asset, mid-tier gold producer in Zimbabwe
Gold is strategically important to Zimbabwe primarily as a major source of foreign currency and export earnings, a key element for monetary stability through the gold-backed ZiG currency and a crucial driver of livelihoods and employment.
Zimbabwe’s gold production rose by 17 percent to reach an all-time high of 46,7 tonnes in 2025, up from 36.48 tonnes in 2024, Fidelity Gold Refinery (FGR), the country’s sole gold buyer, said.
Provisions in Finance Act Number 7, Caledonia said, validate the position outlined in its December 19, 2025, announcement regarding proposed changes to the tax and royalty regime.
In an update, the mining firm said, “The enacted provisions confirm the position outlined in the announcement of December 19, 2025.
“Specifically, the royalty rate of 10 percent will only apply if the gold price exceeds US$5 000 per ounce. The other proposed changes to the tax and royalty regime that were highlighted in the announcement of December 1, 2025, have been withdrawn.”
Zimbabwe’s gold royalty rates are tiered by price, with recent changes keeping the rate at 5 percent for gold prices between US$1 200 and US$5 000/oz, while a higher 10 percent royalty applies only when prices exceed US$5 000/oz.
“Caledonia confirms that no amendments are therefore required to the Bilboes Gold Project Technical Report Summary, which was published on November 25, 2025, as a result of the changes proposed in the Budget that were highlighted in Caledonia’s announcement of December 1, 2025,” the firm added.
The confirmation provides regulatory and fiscal clarity for the Bilboes Gold Project and reinforces the validity of the technical and economic analysis previously disclosed by Caledonia.
The company is strengthening its position as one of Zimbabwe’s largest gold producers, targeting production of 300,000 ounces over the medium term, anchored by the Bilboes project.
In 2023, the Victoria Falls Stock Exchange-listed group invested US$65,7 million to acquire the Bilboes Gold Project, located in Bubi District, Matabeleland North Province. Completion of the transaction marked a major milestone in Caledonia’s growth strategy.
A feasibility study at the time projected annual production of between 250 000oz and 300 000oz from the open-pit mine, a level that would elevate Caledonia into the ranks of emerging Tier 1 African gold producers.
Currently, Caledonia, whose flagship operation is the Blanket Mine in Gwanda, Matabeleland South Province, also owns the Maligreen Goldfields and Glen Hulme projects in Gweru, Midlands Province. The company aims to become a multi-asset gold producer in Zimbabwe.-herald
