• Eureka Gold Mine commissioned 5.4MW of a planned 16.4MW solar plant after investing US$4.5 million
• The completed facility will supply the mine and export approximately 8.2MW to the national grid
• Solar tracking extends generation to 10 to 11 hours daily, lowering diesel exposure and supporting mine productivity

Harare - Eureka Gold Mine, a subsidiary of Padenga Holdings' Dallaglio Investments has commissioned the first 5.4MW phase of a planned 16.4MW solar power plant after investing about US$4.5 million according to the latest circular.

This marks a strategic shift from managing electricity shortages to producing surplus power for the national grid as Zimbabwe’s mining sector accelerates investment in self generation to protect production, lower operating costs and create new infrastructure revenue streams.

The project represents one of the country’s largest captive renewable energy investments by a gold producer. Once fully completed at a total cost of between US$12 million and US$15 million, the facility will generate 16.4MW, with approximately 8.2MW exported into the national grid through Zimbabwe’s net metering framework.

The first phase comprises 42 solar panel arrays, seven inverters and a 5.5MW substation supplying electricity directly to the mine, while solar tracking technology extends daily generation to between 10 and 11 hours from the approximately six hours achieved by conventional fixed panel installations.

The development changes the commercial role of electricity within mining. Power has traditionally been treated as a production input purchased from the grid or diesel generators. Eureka is positioning electricity as a productive asset capable of lowering mining costs while generating additional income through surplus power exports. The investment therefore improves operating resilience and creates a secondary revenue stream independent of gold production.

Electricity has become one of the largest operating risks facing Zimbabwe’s mining industry. Grid instability, rising diesel costs and increasing fuel price volatility have forced producers to invest directly in energy infrastructure to protect plant utilisation and equipment availability. Every hour of unplanned power interruption reduces mill throughput, delays ore processing and increases unit production costs. A reliable captive power supply improves plant utilisation, strengthens production planning and reduces dependence on emergency diesel generation.

The solar investment also improves cost competitiveness during a period of elevated international gold prices. Mining margins depend on both commodity prices and operating costs. While producers cannot influence global bullion prices, they can strengthen free cash flow by reducing electricity expenditure, improving energy efficiency and lowering diesel consumption. Extending solar generation to as much as 11 hours each day increases the proportion of mining operations supplied by lower cost renewable energy, reducing exposure to imported fuel.

The project reflects a wider structural shift across Zimbabwe’s mining sector. Producers are increasingly allocating capital to energy infrastructure alongside mining assets because reliable electricity has become essential to sustaining production growth. Renewable energy projects are moving from environmental initiatives into core mining infrastructure as companies seek greater control over operating costs and production reliability.

Eureka’s investment also supports national electricity supply. Exporting approximately 8.2MW into the grid increases available generation capacity without requiring public sector capital expenditure, strengthening power availability for industrial and commercial consumers. The model aligns private mining investment with Zimbabwe’s broader objective of expanding renewable generation under the National Development Strategy 1 and the transition toward a more diversified electricity mix.

The commissioning builds on Eureka’s transformation over recent years. Operated by Dallaglio Investments, the mine was redeveloped after years of inactivity and has been repositioned as one of Zimbabwe’s major modern gold operations through sustained investment in mining infrastructure and processing capacity. The addition of utility scale renewable energy extends that investment beyond extraction into long life strategic infrastructure supporting future production.

The commercial significance extends beyond Eureka. Zimbabwe’s mining industry is entering a phase where competitive advantage will increasingly depend on ownership of critical operating infrastructure instead of reliance on third party utilities. Mines capable of generating their own electricity secure higher plant availability, lower operating costs, stronger production consistency and greater resilience against energy market disruptions. Those advantages become increasingly valuable as producers expand output and pursue lower cost ounces in a globally competitive gold market.

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