The South Deep gold mine is one of the deepest mines in the world, with a depth of 2,700 meters. It is located 45 km southwest of Johannesburg in the Witwatersrand Basin, South Africa and has produced over 4 million ounces of gold since it started operating in 1991. The mine was built by the Wescoal Company which sold it in 2007 to Goldfields. Then they invested millions in improving the mine’s production. The 98% owned South Deep, which produced 444koz in FY19 and 428koz in FY18, has been Gold Fields’ millstone (or a millstone around management’s neck), since the company bought it via an unsolicited bid in 2007.
- It is very expensive to build a mine.
- Deep mines are more expensive to build than shallow mines. That’s because you have to dig deeper, and often there is more rock that needs to be removed.
Where is the South Deep gold mine located?
South Deep gold mine is located 45km southwest of Johannesburg in the Witwatersrand Basin, South Africa. The Witwatersrand Basin is a large area of land in South Africa which has been known for its gold mines since 1886.
