South Africa Gold Mining Market Analysis including Reserves, Production, Production Forecasts, Operating, Developing and Exploration Assets, Key Players and the Fiscal Regime including Taxes and Royalties, 2020-2025
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South Africa ranks fourth globally in terms of gold reserves, with 2.7 million tonnes (Mt) in 2020, and accounted for 5.1% of the world’s total as of January 2021. Gold reserves are mostly distributed across the provinces of Gauteng and Mpumalanga. In terms of major producers, Harmony Gold, Sibanye-Stillwater, Gold Fields, and Pan African Resources are the top four gold producers in South Africa, accounting for 83.3% of the country’s total production. Together, these companies produced 2,669.1koz of gold in 2020.
Over the forecast period (2021-2025), the country’s gold production is expected to expand at a CAGR (compound annual growth rate) of more than 3% by 2025. Growth will be mainly supported by over 20 upcoming projects which are under development, of which two are under construction. Platreef Project and Bakubung Project are expected to commence operation by 2022, with a combined metal production capacity of more than 31 koz.
South Africa gold mining market overview
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What are the South Africa gold mining market dynamics?
Gold production in South Africa has been experiencing a severe downward trend for many years, primarily due to rising mining costs, union strikes and power disruptions. In mid-2018, the South African Mineral Council stated that over 75% of domestic gold mines were unprofitable, due to the increasing cost of underground mining. This trend continued in 2020, with production also being impacted by the emergence of the Coronavirus (COVID-19) pandemic, as well as rising production costs. This led to an estimated fall of 10.4% in the country’s gold production to 3.2 million ounces (Moz) in 2020, against 2019.
Gold producers benefited significantly from a steep increase in the gold price in 2020, with gold seen as a safe haven amid the COVID-19 pandemic and interest rate cuts and huge liquidity injections by central banks and governments as a response to the pandemic. This resulted in strong inflows into gold-backed exchange-traded funds (ETF) and supported gold prices. Despite of the strong recovery in gold demand along with ETF inflow in Q2 2021, global gold demand fell by 10% in H1 2021, against H1 2020, mainly due to the effects of the COVID-19 outbreak and lower demand from China. China and India are the largest gold-consuming countries in the world, together accounting for more than half of the total demand.
What is the categorization of South African gold mining assets?
The South Africa gold mines are categorized into active mines, development projects and exploration projects, further categorized according to their mining stages along with additional information as total resources, equity owners etc.
Who are the major players in the South Africa gold mining market?
Harmony Gold, Sibanye Stillwater Ltd, and Gold Fields Ltd are the top three gold producers in South Africa.
Harmony Gold Mining Company carries out underground and surface gold mining, exploration, processing and smelting activities in South Africa and Papua New Guinea. Sibanye Stillwater Ltd (Sibanye-Stillwater), formerly Sibanye Gold Ltd, is a precious metal and mining company, headquartered in Westonaria, South Africa. The company was the second largest gold producer in South Africa.
South Africa gold mining market, by key companies
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Market report scope
Market volume (Year – 2020) | 2.7 Mt |
Growth rate | CAGR of >3% from 2021 to 2025 |
Base year for estimation | 2020 |
Product segmentation | Active mines, Development projects, Exploration Projects |
Forecast period | 2021–2025 |
Key companies | Harmony Gold, Sibanye Stillwater Ltd, and Gold Fields Ltd |
The report also provides detailed information on reserves, production, production by company and country, major active, exploration and development projects by region.
Reasons to Buy
- To gain a comprehensive evaluation of the impact of the COVID-19 on South Africa’s gold mining industry
- To understand the historical and forecast trend on the country’s gold production
- To understand production by major producers, by mines and trend of gold prices
- To get an overview on demand from Chinese market
- To evaluate major active, exploration and development mines of gold in the country
Sibanye-Stillwater
Gold Fields
Pan African Resources
Table of Contents
Frequently asked questions
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What is the South Africa gold mining market volume in 2020?
The South Africa gold mining market volume was estimated at 2.7Mt in 2020.
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What is the South Africa gold mining market growth rate?
The South Africa gold mining market is expected to grow at a compound annual growth rate of more than 3% from 2021 to 2025.
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Who are the key players in South Africa Gold mining market?
Harmony Gold was the leading company in 2020, followed by Sibanye Stillwater Ltd., and Gold Fields Ltd.
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What are the major asset categories in South Africa Gold mining market?
The South African gold mining assets are categorized into active mines, development projects and exploration projects.
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