Pan African Resources has laid out plans to build a R2.8bn facility that will process leftover gold mine waste in Soweto, the company said on Thursday.
The huge module will process 600,000 tonnes per month of residual material left over from Soweto’s historic gold mines, churning out between 30,000oz and 35,000oz of bullion a year for 15 years.
Assuming a conservative $2,800/oz average gold price over the next few years, this equates to nearly $100m in extra revenue every year and a post-tax present value just shy of $130m.
At a more bullish forecast of $3,500/oz on average, the project’s post-tax present value jumps to $234m (R4.02bn).
The move comes as soaring gold prices continue to free up capital for South African miners, opening up new opportunities for expansion.
More than a century of gold mining has left hundreds of thousands of tonnes of mud-like residual ore waste scattered across the country, particularly in Gauteng, with their economic viability also rising in tandem with the price of gold.
The new module, called Soweto Tailings Retreatment (STR), would be partly integrated into Pan African’s Mogale Tailings Retreatment (MTR) complex in Johannesburg.
The group has been steadily ramping up and optimising operations at MTR since its commissioning last October. Next month, it plans to add about 10,000oz of annual production capacity to the operation.
Meanwhile, STR’s construction is expected to take about two years, with a capital bill of $160m, including the cost of remining and installing new pumping infrastructure. First the group must complete a definitive feasibility study and obtain an environmental impact assessment and water use licence — all of which are slated for next June.
Pan African CEO Cobus Loots said the expansion would increase MTR’s overall production to almost 100,000oz a year. It would “leverage operational synergies to reduce the complex’s very competitive AISC even further”, he said.
Shares in Pan African gained 2.6% in morning trading on Thursday, tracking a broader rally in gold mining stocks, as investors welcomed the expansion plans.
In a similar move earlier this year, Sibanye Stillwater subsidiary DRDGold laid out ambitious plans for its Ergo tailings retreatment site, which stretches from central Johannesburg to Ekurhuleni.
By expanding Ergo’s lifespan and deposition capacity, the group said it aims to provide a new face to the vast area of land immediately to the southeast of Johannesburg’s CBD, around Nasrec, which is currently occupied by three mine dumps.
Correction: November 27 2025
This article has been corrected to include that SRT will process 600,000 tonnes of tailings a month.
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