South Africa Opens First Rare Underground Gold Mine in 15 Years
South Africa Opens First Rare Underground Gold Mine in 15 Years
South Africa’s first new underground gold mine in 15 years, the Qala Shallows Gold Mine, was inaugurated on Thursday in Roodepoort, propelled by the metal’s record price surge.
"[Price] projections indicate further upward movement," Gwede Mantashe, Minister of Mineral and Petroleum Resources, said.
The $90 million project is expected to ramp up production to 70,000 ounces annually, providing a rare boost to a sector that has seen output decline by more than 70% over the past two decades as aging, high-cost deep-level mines lose competitiveness, according to media reports.
"Gold mining's contribution to the economy was further demonstrated by its 2023 production of 96 tonnes, positioning SA as the 13th largest gold producer globally & the 4th largest in Africa," Mantashe added.
The company plans to expand across its concession, with a long-term goal of reaching 200,000 ounces per year. Qala Shallows comes online at a moment when gold has climbed nearly 60% this year, repeatedly hitting new record highs — underscoring the mine’s timely debut.
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