JOHANNESBURG (miningweekly.com) – The new Qala Shallows gold mine is not only a milestone for West Wits Mining but also for South Africa's mining industry, the South African economy, and the communities that will share in the opportunities created here, Minerals Council South Africa CEO Mzila Mthenjane highlighted at the official opening of South Africa’s first underground gold mine since Burnstone gold mine opened near Balfour in Mpumalanga in 2009.

Qala Shallows is a mere 15 minutes west of the central business district of Johannesburg, which is honoured as the Golden City because of its golden history. 

“It’s cause for celebration,” said the head of a council that has a mission to lower the cost of doing mining business in South Africa.

“Gold is woven into the fabric of South Africa's life's story. From the discovery of gold on the Witwatersrand in 1886, which transformed Johannesburg into the City of Gold, to today's modern operations, mining has been central to our nation's development,” said Mthenjane, whose council continues to play a vital role in ensuring that the legacy of mining –  and particularly gold – remains a driver of growth and shared prosperity for generations to come.

“This West Wits gold mine continues this proud tradition, but with a new chapter  – one defined by innovation, sustainability, and inclusivity. This mine is not just about extracting gold; it’s about creating value responsibly, ensuring that the benefits extend far beyond the mine gates,” he pointed out at the event covered by Mining Weekly.

Mining contributes about 6% to South Africa's GDP in nominal terms and supports around 470 000 direct jobs.

With the opening of West Wits’ Qala Shallows, that contribution is being strengthened.

“This mine will generate employment, stimulate local businesses, and contribute to government revenues that fund essential services for local communities and the country at larger.

“Importantly, it will also attract investment confidence at a time when South Africa needs growth and stability.”

Gold mining in South Africa is characterised by declining resources and production.

In 1994 the gold sector contributed about 43% to total mining production, the equivalent of 580 kg of gold.

In 2024 South Africa produced 90.2 kg – a decline of 84% compared with 1994. Gold currently contributes 10.5% to total mining production, a significant decline from the 43% by any measure.

However, as the gold sector shrunk, other commodities grew in prominence, including the platinum-group metals that currently contribute 27% to the production basket, coal (26%) and iron-ore (16%).

And yet gold still contributes significantly to the South African economy by employing close to 90 000 people who were paid more than R35-billion in 2024 alone.

Gold is a significant foreign exchange earner for South Africa, helping government to service its external debt.

It also helps the economy to import the valuable productive machinery and technology so important for inclusive economic growth and development.

In 2024 gold exports amounted to over R149-billion. This represented more than 7% of South Africa's total merchandise exports, which totalled slightly over R2-trillion.

When it comes to community and social impact, mining is not only about production and GDP numbers. It is about people. West Wits has committed to working hand-in-hand with local communities, ensuring that skills development, education, and enterprise opportunities are embedded in its operations.

“We envision a future where young people from this region see mining not as a distant industry but as a pathway to careers, innovation, and prosperity. This mine will be a partner in uplifting communities, respecting cultural heritage, and protecting the environment.

“Sustainability and innovation are apparent. As the world changes, so mining has also evolved and adapted. West Wits is embracing modern technologies, improved safety standards, and environmental stewardship.

“From reducing carbon emissions to rehabilitating land, this mine will demonstrate that mining can be both profitable and responsible. It is indeed encouraging that West Wits is a low-cost gold production mine with 17-years of life-of-mine.

“We are proud that this project aligns with South Africa's Just Energy Transition, ensuring that mining remains relevant in a low-carbon future.

"Let’s remember, this is more than the opening of a mine. It is the opening of possibilities for workers, communities and South Africa," Mthenjane emphasised.