New Underground Gold Mine Launched Near Johannesburg

JOHANNESBURG — 2025

An Australian mining company will open South Africa’s first new underground gold mine in over 10 years near Johannesburg, signaling potential revival in the struggling sector.

West Wits Mining, listed in Australia, will begin operations at its Qala Shallows mine in 2026. The $90 million project—first of its kind since 2009—aims to produce 70 000 ounces annually for 17 years. (company statement)

The launch comes as gold hits record highs of around $3 340 per ounce, a 27% surge in 2025 alone. West Wits CEO Rudi Deysel said prices boosted viability: “We are really the only formal company trying to start a new mine in South Africa’s gold industry.”

Financing includes $50 million from the Industrial Development Corporation and Absa Group. Ore will be processed at Sibanye Stillwater’s existing facility. (company funding details)

Located in Johannesburg’s historic Witwatersrand Basin, the 850-metre-deep mine is shallower than older operations exceeding 3 kilometres. Production costs are estimated below $1 300 per ounce.

South Africa’s gold output has dropped over 70% in 20 years amid high costs, deep-level challenges, labour pressures, and power instability. Mining jobs now stand below 90 000—a fraction of 1980s peaks.

Historian Duncan Money noted the decline stems more from global competition than domestic issues: “The demise of South Africa’s gold industry is usually told as a morality tale about bad domestic politics, but the crucial development was the worldwide expansion stimulated by soaring gold prices in the 1970s and 1980s.”

Qala Shallows could generate $2.7 billion over its lifetime, creating jobs and signaling modest recovery for the historic industry. (company projection)