Record gold prices have not prompted South Africa’s mining companies to invest in new deep-shaft mines, with producers instead pursuing shallow and surface projects that carry lower costs and faster returns.
Gold prices climbed approximately 60 percent in 2025 to a series of all-time highs, driven by trade tensions, central bank buying and expectations of United States interest rate cuts. Despite the price surge, South Africa’s annual gold output remains near 90 metric tons, down from a peak of 1,000 metric tons in 1970.
South Africa’s gold exploration spending fell to 43 million dollars in 2025 from 900 million dollars in 2006, a decline of nearly 90 percent, according to Statistics South Africa. Dwindling economically viable reserves, labour unrest and the geological challenges of operating the world’s deepest mines have contributed to the production decline.
Sibanye Stillwater is prioritising shallow, high-margin projects to grow its gold output. The company’s plans centre on the Burnstone development project, which it describes as a low-cost, long-life operation. It is also pursuing growth through its 50 percent stake in DRDGold, which recovers gold from waste dumps.
Harmony Gold, South Africa’s largest gold producer, is evaluating the potential recovery of 5.7 million ounces through waste retreatment. Finance director Boipelo Lekubo said the lead time required for underground development made deep-shaft expansion difficult to justify given price uncertainty.
West Wits Mining launched South Africa’s first new underground gold mine in 15 years in October 2025. The Qala Shallows mine operates in the Witwatersrand basin and uses mechanised extraction and hydropower to reduce costs. The company targets initial annual output of 70,000 ounces with plans to scale to 200,000 ounces in future phases.
The Minerals Council of South Africa expects gold production to remain at approximately 90 metric tons in the coming year.
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