With gold prices hovering at multi-year highs, industry analysts and stakeholders are urging South Africa to ramp up production and seize the opportunity before market conditions shift. The nation’s remaining major gold mining companies are being encouraged to focus inward and pursue expansion while the commodity remains highly profitable.
The call comes amid concerns that past strategic missteps—particularly the premature closure of gold mines—have left significant value untapped. Many of these abandoned operations have since become hotspots for illegal and hazardous mining activities, commonly known as “zama-zama” mining, which poses serious safety, social, and environmental risks.
“This situation should never have been allowed to arise,” said one industry expert. “Now that the gold price is favorable, every effort should be made to maximize output from operating mines, and to fast-track projects that are now economically viable.”
Several reputable market analysts have forecast further gains in gold prices, reinforcing the urgency to capitalize on the current environment. Analysts stress that the existing five principal gold mining firms should prioritize domestic opportunities and optimize operations rather than looking abroad.
In light of the ongoing risks posed by abandoned mines, some voices in the sector are also calling for innovative remediation. Companies associated with decommissioned and flooded mine shafts are being urged to explore conversion into renewable energy assets—such as underground pumped-storage power stations—as a form of restitution and sustainable development.
As global economic uncertainty continues to drive demand for safe-haven assets like gold, South Africa’s mining sector faces a rare window to boost its contribution to the national economy—provided it acts decisively and responsibly.
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