Cale­do­nia con­tri­bu­tion to Zim econ­omy in­creases

Chronicle (Zimbabwe) - - Business Chronicle -

PAY­MENTS to the Govern­ment by Cana­dian based Cale­do­nia Min­ing Cor­po­ra­tion, which owns 49 per­cent stake in Blan­ket Mine in Gwanda, Mata­bele­land South prov­ince, for the quar­ter ended June 30 this year, in­creased by $878 000 to $2,963 mil­lion.

Pay­ments in­cluded to the Gwanda Com­mu­nity Share Own­er­ship Trust in terms of the com­pany’s in­di­geni­sa­tion com­mit­ments, roy­al­ties, tax­a­tion, as well as other non-tax­a­tion charges to the Zim­babwe govern­ment and its agen­cies.

The group said pay­ments to the Zim­babwe govern­ment were higher in the quar­ter com­pared to the pre­ced­ing one. This came out dur­ing man­age­ment dis­cus­sion and anal­y­sis of the con­sol­i­dated op­er­at­ing re­sults and fi­nan­cial po­si­tion of the com­pany.

“This was due to higher roy­alty pay­ments, higher pre­vail­ing gold price and sales vol­umes and the tax payable on the profit aris­ing on the sale of the Bills by Blan­ket,” the group said.

In May, this year the com­pany an­nounced that Blan­ket Mine had sold Trea­sury Bills is­sued by the Govern­ment for a gross value of ap­prox­i­mately $3,2 mil­lion. Dur­ing the pe­riod un­der re­view the com­pany pro­duced 12 510 ounces of gold com­pared to 10 401 ounces in the same pe­riod last year.

The com­pany said there was “higher” gold pro­duc­tion due to in­creased tons mined and milled and higher grade. Cash from op­er­at­ing ac­tiv­i­ties surged to $7,2 mil­lion com­pared to $1,9 mil­lion.

“This re­flects the higher sales vol­umes and gold price and lower av­er­age costs of pro­duc­tion,” the group said.

Cale­do­nia in 2014 an­nounced its Re­vised In­vest­ment Plan (RIP) and pro­duc­tion pro­jec­tions for Blan­ket Mine whose ob­jec­tives were to im­prove the un­der­ground in­fra­struc­ture, lo­gis­tics as well as to al­low an ef­fi­cient and sus­tain­able pro­duc­tion build-up.

The group added that the RIP pro­vided for pro­posed in­vest­ment of ap­prox­i­mately $50 mil­lion be­tween 2015 and 2017 and a fur­ther $20 mil­lion dur­ing the pe­riod 2018 to 2020. — New Ziana

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