After decades of decline, South Africa’s gold industry is seeing a rare moment of renewal. The development of West Wits Mining’s Qala Shallows project, the country’s first new underground gold mine in 15 years, marks more than just a single investment. It’s a step towards revitalising a sector that once defined Johannesburg’s economy and identity, and brings renewed investment into the South African mining industry.
Despite challenges in recent years, including the drop in gold production and, in particular, the significant risks of very deep underground mines, gold mining is still a vital part of South Africa’s economy. It accounts for roughly 10% of the country’s total mining revenue and supports thousands of jobs with broader economic ripple effects across the value chain. A project like Qala Shallows, therefore, brings renewed optimism, jobs, and opportunity at a crucial time to a depressed market.
The new mine, set to start production next year, will be significantly less deep than many of the country’s other gold mines, with a maximum depth of 850 metres, promising safer working conditions. It will also leverage innovative mining techniques and sustainable practices to drive efficiency and reduce environmental impacts, and support South Africa’s position as a key player in the global market.
The Alchemy team is honoured to have advised on the funding that has made this project possible, and looks forward to watching the revival of the reef’s heartbeat in South Africa’s gold sector.
Read our news article for more information about this transaction, and more about the project in Moneyweb’s article.