Gold boom sparks scramble for mines

For years, hundreds of illegal miners known locally as zama zamas prospected for gold on this patch of land on the outskirts of the city with hammers and chisels in hand-dug tunnels.

- Alexandra Wexler

Record prices are breathing new life into South Africa's ailing gold-mining industry

(REUTERS)

Now, the site has been transformed into South Africa’s first new underground gold mine in more than 15 years, part of a global rush to boost production of a metal trading at record prices.

"It looked like a Mad Max movie,” said Rudi Deysel, chief executive of West Wits Mining, the Australian company that owns the mine. “I had to crawl on my stomach to go in there.”

Around $100 million of investment is pouring into the mine, where workers now sport hard hats, carry emergency breathing devices and use advanced drills and other equipment. The project, called Qala Shallows, recovered its first gold in October and is estimated to produce more than $4.5 billion of the metal at current market prices.

The precious metal has more than doubled in value in less than two years.

The surge has boosted profits for mining companies around the globe, encouraging them to restart old mines, expand existing operations and develop new projects.

Global gold-exploration budgets increased 11% to $6.15 billion in 2025, according to S&P Global Energy.

Newmont, the world’s No. 1 gold miner, put its Ahafo North mine in Ghana into commercial production in October. Barrick Mining, the No. 2 gold producer, is this year expected to start underground development of its Fourmile project in Nevada.