Gwanda Community Share Ownership Trust (GCSOT) is set to receive its 10 percent dividend from Blanket Mine, a subsidiary of Caledonia Mining Corporation Plc.
In 2012, Caledonia Mining Corporation facilitated the ownership of 51 percent of Blanket mine by indigenous Zimbabweans in accordance with the prevailing 51-49 policy at that time.
This included a 10 per cent ownership by the local community via GCSOT.
But in 2020, following the relaxation of indigenization policy by the government, Caledonia increased its shareholding in Blanket mine to 64 per cent while GCSOT retained its 10 percent ownership.
In 2012 and 2013 Blanket mine made advance dividend payments to GCSOT totaling US$4 million so that it could funds its own operations.
GCSOT repaid the advance dividends by sacrificing its entitlement to future payouts, starting with 100 percent of its dividend entitlement, which was subsequently reduced to 80 per cent.
On September 29, 2021, GCSOT started receiving its dividend after fully settling its arrears with Blanket mine.
Commenting on the announcement, Caledonia’s Chief Executive Officer, Steve Curtis said;
“In 2012 Blanket Mine fully indigenised with 51 per cent of Blanket being owned by Indigenous Zimbabweans. In 2020 when the legislation was repealed, Caledonia increased its shareholding to 64% but kept the local community, through the GCSOT, as a 10% shareholder.
“Investment in our local communities and employees is key to a successful business and I am therefore delighted that the loan to the GCSOT is now fully paid off and that the community will start to receive its full dividend amount from Blanket.”