By: Economy agency

Australia’s West Wits Mining announced on February 16, that it launched a scoping study to assess whether its Witwatersrand Basin Project (WBP) can reach annual production of 200,000 ounces. The company initiated this study after it started the first phase of operations at the asset, and it seeks to inject momentum into a sector that has struggled for years.

South Africa once led global gold production. The country produced about 1,000 tonnes at its peak in 1970. However, output steadily declined to 84 tonnes in 2022 as operators closed numerous mines and as deposits matured.

Developers are now advancing projects such as WBP to revive the industry. West Wits launched the first phase of WBP in December 2025, and it began exploiting the Qala Shallows deposit, which the company describes as the first new underground gold mine announced in the country in more than 15 years. The initial phase targets annual production of 70,000 ounces. The company aims to raise that level to 200,000 ounces per year through the development of a broader mining complex at WBP.

At the same time, Theta Gold Mines plans to commission its TGME mine by early 2027, and it expects output to reach up to 160,000 ounces per year during the first five years. South African group Sibanye-Stillwater also intends to make a final investment decision by mid-2026 on its Burnstone project, which it suspended in 2021 due to unfavorable market conditions. Current plans project annual production of about 140,000 ounces over an estimated 25-year mine life.

“Our most advanced gold project, Burnstone, located in Mpumalanga province, is undergoing a reassessment ahead of an investment decision, given the group’s improved financial position and favorable gold price outlook,” the company states on its website.

These initiatives unfold in a particularly favorable price environment. Gold prices increased by more than 60% in 2025. Bullion trades just below $5,000 per ounce on Tuesday, February 17. Analysts at JPMorgan and UBS forecast prices above $6,000 per ounce by the end of 2026, and these expectations could influence the pace of project development.

However, the sector must still assess the real impact that these projects will have once they reach full capacity. West Wits expects to complete its scoping study by June. Meanwhile, the company plans to accelerate the ramp-up of Qala Shallows. According to company projections, operations at this mine within the WBP complex could generate nearly $1.15 billion for the South African economy over an estimated 12-year life.