At a Glance
- Caledonia commits $132 million toward construction and infrastructure at the Bilboes gold project.
- Bilboes targets 200,000 ounces annual output, eclipsing Caledonia’s existing Blanket mine capacity.
- Project funding blends senior debt, operating cash flows and gold streaming arrangements.
Caledonia Mining Corporation, a major gold producer in Zimbabwe, is planning to invest $132 million this year to advance development of the Bilboes gold project in Zimbabwe, a move set to unlock what is expected to become the country’s largest gold mine.
The investment forms the core of Caledonia’s $162.5 million capital expenditure programme for 2026 and marks the first major construction phase at Bilboes, a long-studied asset with a total estimated capital cost of $584 million.
Once completed, the project is expected to reposition Caledonia as a mid-tier African gold producer.
$132 million investment breakdown
A significant portion of the $132 million will go into early-stage mine construction and infrastructure.
This includes site preparation, access roads, water and power infrastructure, and the initial build-out of processing and support facilities required to move the project toward production readiness.
Engineering and procurement activities, particularly the purchase of long-lead equipment such as crushers, mills and other plant components, will also absorb a sizeable share of the capital.
How Bilboes fits Caledonia Mining’s growth strategy
Caledonia is also directing funds toward detailed engineering, project management and pre-production works.
These steps are critical for de-risking execution, tightening cost controls and ensuring the mine can transition smoothly into construction and, ultimately, production.
In parallel, part of the spending supports technical studies and optimisation work needed to finalise financing arrangements.
Funding structure and project timeline
The company plans to fund Bilboes through a mix of non-recourse senior debt, cash flows from existing operations and specialised structures such as gold streaming, under which investors provide upfront capital in exchange for future metal deliveries.
When completed, Bilboes is expected to begin production in late 2028 and reach steady-state output of about 200,000 ounces annually from 2029, dwarfing Caledonia’s current 80,000-ounce-per-year Blanket mine.
Backed by record gold prices and a more supportive fiscal stance from Zimbabwe’s government, the $132 million spend marks a decisive step in Caledonia’s ambition to scale into a mid-tier African gold producer.
