A gold miner, with a major interest in a gold asset in Zimbabwe, is one of many mine operators to benefit from a governmental drive to attract and increase investment into the African mining sector.
Caledonia Mining Corporation announced in a statement this week that, following a 2018 Monetary Policy Statement issued by the governor of the Reserve Bank of Zimbabwe, it will receive an additional income of $5.1 million.
This additional income comes from an increase in the Export Credit Incentive (ECI), a governmental initiative that saw it increase by 2.5% up to 10%.
Through the ECI increase, the Zimbabwe government is striving to attract foreign investment into a growing gold sector, establishing Zimbabwe as an attractive jurisdiction for global mine operators.
Commenting on the developments, Steve Curtis, Caledonia’s Chief Executive Officer, said:
“The increase in the ECI from 2.5% to 10% is a further significant step by the Zimbabwean Government to boost investment and production in the gold mining sector,”
“It is very pleasing to see the government delivering on previous policy statements to promote investment in the sector.”
Caledonia will utilise these additional funds to advance the production and development of its Blanket Gold Mine. The company had stated that it plans to increase production at the Blanket Gold Mine to approximately 80,000 ounces of gold by 2021.
The news comes soon after it was revealed that the Zimbabwe mining sector looks primed for more than $300 million in investment, as Africa is seeing its “best mining prospects in more than a decade.”