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South Africa, one of Africa’s leading gold producers, has launched its first new underground gold mine in 15 years as the country moves to take advantage of the global surge in gold prices. The opening of the Qala Shallows mine comes at a time when gold values have climbed to historic highs, driven by heightened trade tensions, currency volatility, and expectations of upcoming interest-rate cuts in the United States.
Global spot gold recently soared to an unprecedented USD 4,227.35 per ounce, supported by a weaker dollar and investor anticipation ahead of key U.S. inflation data that could influence the Federal Reserve’s next policy decision. Earlier, the metal had also reached another milestone—breaking above USD 4,100 per ounce for the first time in October 2025. On that day, spot prices jumped 2.2% to USD 4,106.48 per ounce, after touching a record USD 4,116.77.
This exceptional performance has had a ripple effect across African markets, from increased geopolitical tensions in the Sahel, where mines have been seized, to new investments such as South Africa’s recently commissioned Qala Shallows project. The mine, unveiled during a launch event hosted by West Wits Mining Ltd. near Johannesburg, is expected to generate USD 90 million in annual revenue and produce around 70,000 ounces of gold per year. The Australia-listed company has already brought its first ore to the surface and is building a 30,000-ton stockpile as development progresses.
South Africa’s renewed push into gold mining comes after two decades of steep decline, during which national output dropped by more than 70% as local operations struggled to compete with lower-cost producers worldwide.
The broader industry has also seen major consolidation moves. In May, Gold Fields—through its Australian subsidiary Gruyere Holdings—announced plans to acquire Gold Road Resources for USD 2.4 billion. The deal gives Gold Fields full ownership of the long-life, low-cost Gruyere gold mine in Western Australia, strengthening its portfolio with high-quality assets.
Similarly, in September, Harmony Gold advanced its strategic expansion by announcing a USD 1.08 billion (R19 billion) acquisition of Australia’s MAC Copper. Harmony, headquartered in Randfontein and recognized as South Africa’s largest gold producer by volume, operates a mix of underground, open-pit, and surface-retreatment operations mainly in Gauteng and the Free State.
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Further investment momentum followed in October, when Theta Gold Mines secured an additional USD6 million to speed up development of its flagship TGME project in Mpumalanga. The raise, supported by key investors Hong Kong Ruihua Investment Management and Jingsha Diao, added to the USD 33.9 million (A$51.4 million) the company had secured earlier in the month.
Together, these developments signal a renewed era of growth and restructuring within South Africa’s gold industry—one driven by record-breaking prices and a global market increasingly attentive to safe-haven assets.
