South Africa is preparing to launch its first new underground gold mine in more than a decade, a move seen as a major step for a sector that has been in decline. The Qala Shallows project, run by West Wits Mining, is scheduled to begin production in 2026 with a $90 million investment. The mine is expected to produce about 70,000 ounces of gold annually over 17 years, generating as much as $2.7 billion in revenue.
The mine will operate at a shallower depth of about 850 meters, compared to older mines that go down more than three kilometers. This makes it less costly and safer to run, with production costs projected below $1,300 per ounce, well under today’s gold price of around $3,340. Financing has been secured through the Industrial Development Corporation and Absa Group, boosting confidence in the project’s long-term profitability.
South Africa’s gold output has fallen sharply—dropping by more than 70 percent over the past two decades—as older mines became too expensive and difficult to maintain. The Qala Shallows project signals that new investments are still possible, especially with global gold prices at record highs.
The mine will also make use of existing infrastructure through Sibanye’s processing facilities, further reducing startup costs. Industry experts say the project could inspire renewed interest in South African mining and encourage exploration of untapped resources, offering hope for an industry once considered the backbone of the nation’s economy.