Record gold prices are pushing South Africa’s (SA) beleaguered mining industry to find new ways to recover the metal that sidestep the costly deep-shaft mining of old, industry executives said.
But with no boom in new mine development expected, they’re unlikely to add enough production any time soon to significantly lift the stubbornly low output of a country that for more than a century was the world’s biggest gold producer.
SA’s gold exploration has dropped nearly 90% from the 1990s, with spending on mineral exploration declining to just $43 million in 2025 from $900 million in 2006, according to Statistics SA.
Its gold production has plummeted to 90 metric tons annually from a 1970 peak of 1,000 tons on dwindling economically viable reserves, labour unrest, and the geologically taxing conditions in the world’s deepest mines.
Gold prices meanwhile have surged, climbing about 60% in 2025 to a series of all-time highs on trade tensions, central bank buying and expectations of United States rate cuts.
But rising prices are yet to entice SA miners to invest significantly in new output.
As prices climb, diversified miner Sibanye Stillwater is prioritising shallow, high-margin projects to boost its gold output. Its plans centre on Burnstone, a development project it says will be a low-cost, long-life operation.
It is also pursuing growth opportunities with its 50%-owned DRDGold, which recovers gold from waste dumps, Chief Executive Officer Richard Stewart said on a February 20 results call.
Underground mining expansion remains unlikely for Harmony.
–Reuters–
