With gold breaking records, South Africa opens its first new gold mine in 15 years

In October 2025, the price of gold achieved unprecedented levels, surpassing $4,100 per ounce for the first time.

This new record was established amidst renewed trade tensions between the United States and China, coupled with expectations of forthcoming interest rate reductions in the U.S.

Spot gold rose by 2.2% to $4,106.48 per ounce as of 01:47 p.m. ET (1747 GMT), having previously reached a record high of $4,116.77.

As of today, a report by Reuters showed that gold prices shot up, aided by a weaker dollar, as investors awaited U.S. inflation data that might set the tone for the Federal Reserve’s interest-rate decision next week.

As of 0717 GMT, spot gold had risen 0.5% to $4,227.35 per ounce, although it was expected to fall 0.1% this week.

As a result of the mineral’s impressive performance all year round, markets in Africa are reacting significantly, including the seizure of mines in the Sahel region, and very recently, the construction of a new rare underground gold mine in South Africa.

The new underground mine is the first the country has built in 15 years.

West Wits Mining Ltd. put up an event for the launch of the mine at the company’s Qala Shallows site on the outskirts of Johannesburg.

The Australia-listed company is constructing a 30,000-ton stockpile after bringing its first ore to the surface in October.

The new mine promises $90 million in annual revenue, with a production capacity of 70,000 ounces in the same period.

Due to the country’s expensive mines’ inability to compete with other producing nations, South Africa’s gold output has decreased by more than 70% over the last 20 years, after dominating the world rankings for decades, as seen on Bloomberg.

This transaction values the Australian gold miner’s equity at A$3.7 billion (US$2.39 billion).

The acquisition announced by both businesses would give Gold Fields complete control of the low-cost, long-life Gruyere gold mine in Western Australia, which it now operates through a joint venture with Gold Road Resources.

Gold Fields now owns the remaining 50% stake in the Gruyere gold mine, and stated the consolidation is part of its aim to improve portfolio quality through long-life assets.

In September, the South African gold mining company, Harmony Gold, advanced its expansion plans with the planned acquisition of Australia’s MAC Copper for $1.08 billion (R19 billion).

Harmony Gold, headquartered in Randfontein, is the country’s largest gold producer by volume and operates a portfolio of underground and open-pit mines concentrated in the Free State and Gauteng provinces, as well as surface retreatment projects.

The funding round, backed by cornerstone investors Hong Kong Ruihua Investment Management and Jingsha Diao, came on the heels of a US$33.9 million (A$51.4 million) raise earlier in the month.