South Africa’s gold sector is making efforts to recover after decades of falling production.
On February 16, Australia’s West Wits Mining announced it had launched a scoping study to determine whether its Witwatersrand Basin Project (WBP) can achieve annual production of 200,000 ounces.
According to Ecofin Agency, the study follows the start of the first phase of operations at the project and is part of a broader push to bring new life to an industry that has struggled for years.
South Africa was once the world’s leading gold producer, reaching about 1,000 tonnes at its peak in 1970. However, production steadily declined to 84 tonnes in 2022 as many mines were shut down and existing deposits became depleted.
Companies are now advancing new projects such as WBP in an effort to revive output. West Wits began the first phase of WBP in December 2025 and started mining the Qala Shallows deposit.
The company describes it as the first new underground gold mine announced in South Africa in more than 15 years. This initial phase aims to produce 70,000 ounces annually.
The longer-term goal is to expand output to 200,000 ounces per year by developing a larger mining complex within WBP.
At the same time, Theta Gold Mines plans to commission its TGME mine by early 2027, with expected production of up to 160,000 ounces per year during its first five years.
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South African mining group Sibanye-Stillwater also plans to make a final investment decision by mid-2026 on its Burnstone project, which it suspended in 2021 due to unfavorable market conditions.
Current plans estimate annual production of about 140,000 ounces over a projected 25-year mine life.
“Our most advanced gold project, Burnstone, located in Mpumalanga province, is undergoing a reassessment ahead of an investment decision, given the group’s improved financial position and favorable gold price outlook,” the company states on its website.
These developments are taking place in a strong price environment. Gold prices rose by more than 60% in 2025, and bullion was trading just below $5,000 per ounce on Tuesday, February 17.
Analysts at JPMorgan and UBS expect prices to exceed $6,000 per ounce by the end of 2026, which could influence how quickly projects move forward.
Even so, the industry still needs to determine the full impact these projects will have once they reach maximum production.
West Wits expects to complete its scoping study by June and is working to speed up production at Qala Shallows.
According to company estimates, operations at this mine within the WBP complex could contribute nearly $1.15 billion to the South African economy over an estimated 12-year lifespan.
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Image Credit: Zimbabwe Independent
