JOHANNESBURG—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.
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 WWI 0.00%increase; green up pointing triangle, 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.