South Africa is poised to open its first new underground gold mine in 15 years, a significant development for a nation that was once the world's largest producer of the precious metal.
Australia-listed West Wits Mining plans to begin production next year at its Qala Shallows operation on the western fringe of Johannesburg.
The company will invest $90 million to develop the mine, which is projected to have a modest annual output of 70,000 ounces over its 17-year life.
This new operation represents a positive development for South Africa's gold sector, which has seen production decline by more than 70% over the past two decades as deep, high-cost mines struggled to compete globally.
Qala Shallows will reach a maximum depth of 850 meters—significantly less than some South African mines that operate more than 3 kilometres beneath the surface.
The project benefits from current high gold prices and will utilise existing processing infrastructure owned by Sibanye Stillwater, avoiding the need to build a new plant.
The mine is expected to generate $2.7 billion in revenue over its lifespan, with operating costs projected below $1,300 per ounce.
Financing includes approximately $50 million in loans from the state-owned Industrial Development and Absa Group.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
