Record gold prices fail to lift SA output

RECORD gold prices are prompting South Africa’s mining industry to pursue alternative extraction methods, but a meaningful increase in the country’s stubbornly low production remains unlikely in the near term, said Reuters.South Africa’s gold output has collapsed to around 90 tons a year from a 1970 peak of 1,000 tons, undermined by dwindling reserves, labour unrest and the punishing geology of the world’s deepest mines, the newswire said. Exploration spending has fallen to $43m in 2025 from $900m in 2006, it added citing Statistics South Africa.Gold prices have surged roughly 60% over the past year to successive records, driven by trade tensions, central bank buying and expectations of US interest rate cuts. But the rally has yet to translate into significant new investment.Instead, producers are favouring shallower, lower-cost projects and surface retreatment. Sibanye-Stillwater is prioritising its Burnstone development and growing its stake in waste-retreatment specialist DRDGold. Harmony Gold is evaluating the recovery of 5.7 million ounces through retreatment, CEO Beyers Nel said.West Wits Mining last October opened South Africa’s first new underground mine in 15 years, the mechanised Qala Shallows operation in the Witwatersrand basin, targeting initial output of 70,000 ounces annually.The Minerals Council of South Africa expects national production to remain near 90 tons next year.The post Record gold prices fail to lift SA output appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com