South Africa Gold Output Stalls Despite Price Surge
Why this is here: West Wits Mining’s Qala Shallows mine is South Africa’s first new underground mine in fifteen years and employs hydropower for ore extraction, aiming for an initial output of 70,000 ounces annually.
Record gold prices are not yet driving significant new production in South Africa. Exploration spending decreased to $43 million in 2025, down from $900 million in 2006, according to Stats SA. Gold production fell to 90 tonnes annually, a drop from a 1970 peak of 1,000 tonnes.
Sibanye-Stillwater and Harmony Gold are prioritizing shallow projects and recovering gold from waste dumps. Harmony Gold aims to recover 5.7 million ounces through waste retreatment. These companies are hesitant to invest in deep-shaft mining due to long lead times and price uncertainty.
West Wits Mining launched the Qala Shallows mine last October, utilizing mechanized operations and hydropower to reduce costs. The Minerals Council of South Africa expects gold production to remain around 90 tonnes next year, consistent with the last five years.