South Africa’s Golden Comeback: The First New Gold Mine in 15 Years
South Africa’s Golden Comeback: The First New Gold Mine in 15 Years
A new underground mine, Qala Shallows, is set to open near Johannesburg — the city that rose from the famous Witwatersrand gold rush of the 1880s.
West Wits Mining Ltd. plans to kick off production next year, with ore extraction starting during its three-year construction phase. The timing couldn’t be better: gold prices are soaring.
Project details:
Investment: $90 million
Expected output: 70,000 ounces annually
Depth: 850 meters (far shallower than South Africa’s ultra-deep mines at 3+ km)
Life of mine: 17 years
Revenue forecast: $2.7 billion
Costs: below $1,300 per ounce
CEO Rudi Deysel highlighted that West Wits is the only formal company currently starting a new gold mine in South Africa — a sector that’s shrunk over 70% in the last two decades due to rising costs and depth challenges.
Instead of building a new plant, Qala Shallows will send ore to an existing Sibanye facility, cutting costs and fast-tracking operations. Funding comes partly from the state-owned Industrial Development Corp. and Absa Group Ltd., which are lending about $50 million.
With gold up 27% this year, the stars have aligned for South Africa’s mining revival.
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