Africa-Press – South-Africa. A new gold mine, Qala Shallows, has opened in South Africa, which is the first of its kind to be opened in the last 15 years, and it’s expected to create over 1,000 new jobs in the country.
Speaking to Kaya Biz, Rudi Deysel, CEO of Qala Shallows, said the opening of South Africa’s first new underground gold mine marked the culmination of nearly a decade of work.
He explained that his team has actually worked on this project since 2016 and that the team spent years navigating permitting, securing funding, and pushing through delays caused by Covid-19.
The official opening follows the mine’s first ore extraction in late October, and Deysel said the timing could not be better.
“We are actually now at this point when the gold price is running quite well… in the end, the timing was excellent.”
While gold mining has long been associated with the West Rand, Deysel said the new mine stands out because it taps into an overlooked deposit.
“This whole area has a very rich history. They were mining gold here for over 100 years,” he said.
For decades, it was assumed the gold had been depleted, but Qala Shallows identified what he calls a virgin block of ground from surface going down.
This gave the company an opportunity to develop an accessible underground operation.
“We intend to mine almost from surface to only 850 metres,” he explained, adding that there are ambitions to expand production and “go deeper and bigger.”
The company is targeting Kimberley Reef—not traditionally seen as a high-grade ore body. However, Deysel added that today’s economics make it viable.
“Earlier years really focused on the high-grade ore in the main reefs. What we are targeting is the Kimberley Reef, which is not that high grade.”
“But at the gold prices we get, and with the new technology we have, it suddenly makes absolute economic sense.”
Transforming the area for good
Rudi Deysel, CEO of Qala Shallows
He described the deposit as a “little jewel that nobody actually looked at,” and sid the project’s financials speak for themselves.
“We’ve got an NPV of half a billion US dollars and an internal rate of return of 81%. And this is only at a gold price estimate of $2,850, so we didn’t even look at the higher prices of today.”
Beyond its economic potential, the mine is also expected to have a significant local impact.
Deysel said Qala Shallows will create well over 1,000 jobs, while also using technology to improve safety and efficiency.
Development tunnels are mechanised, while ore extraction combines conventional mining with hydropower-assisted methods.
“We won’t go the old-fashioned, conventional way. We will go with hydropower, which is much safer, cleaner, and helps with your whole carbon footprint,” he said.
“This approach allows the company to strike a balance between technology and still have a strong workforce.”
The mine’s location—between Soweto and Roodepoort, near Florida—also places it in an area long affected by illegal mining.
However, Deysel said conditions on the ground have changed dramatically. “Illegal mining in this specific area doesn’t exist,” he said.
He attributed this to substantial housing development, community engagement, and a deliberate effort to stabilise the area.
“That whole area has been cleaned up and rejuvenated, which illegal miners don’t really like,” he noted.
“We work quite closely with all our partners in the area… it’s a very positive story of how this area is improving.”
With the project finally in production, Deysel noted that the team is already looking ahead. “We can’t wait to expand our project in the Witwatersrand Basin,” he said.
After years of preparation, he believes South Africa’s new gold mine is poised to deliver long-term value.
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