South Africa Opens First New Gold Mine in 15 Years Amid Record Price Rally

Credit: West Wits Mining

Johannesburg, December 5, 2025 — South Africa has marked a rare milestone in its mining sector with the opening of its first new underground gold mine in 15 years, a development that comes as bullion prices surge to historic highs.

Australia-listed West Wits Mining Ltd. officially launched operations at its Qala Shallows project, located on the edge of Johannesburg. The company began bringing ore to surface in October and has already built a 30,000-ton stockpile as part of its ramp-up phase. The $90 million investment is expected to deliver an initial annual output of around 70,000 ounces of gold.

While modest compared to South Africa’s historic production levels, the project is being hailed as a bright spot for a sector that has seen output collapse by more than 70% over the past two decades. Once the world’s leading gold producer, South Africa has struggled to maintain competitiveness as its deep, high-cost mines face rising operational challenges and global competition.

West Wits emphasized that Qala Shallows demonstrates the country’s ability to build safe, modern underground operations that can generate long-term value for both the economy and local communities. The company also outlined ambitions to expand across its concession, targeting eventual production of 200,000 ounces per year.

The timing of the mine’s debut is significant: gold has gained nearly 60% in 2025, repeatedly setting new all-time highs as investors flock to the metal amid global economic uncertainty. For South Africa, the Qala Shallows project signals renewed potential in a sector long considered to be in decline.