BUSINESS MAVERICK: DEALS OF THE YEAR: Mponeng sale a milestone in SA mining

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The sale of the world’s deepest mine was a defining deal for mining in 2020. The operation stayed in South African hands but the transaction highlighted the changing fortunes of the local industry.

South Africa’s gold industry has long been defined by deep-level mines, which is why the sector has historically been capital as well as labour intensive. Digging deep requires capital and the often low-grade ore grades have required cheap migrant labour to keep the profits and dividends flowing.

Mponeng is the world’s deepest mine — proclaimed on a rather understated sign at the front entrance to the property on the N12 highway west of Joburg — extracting gold from 4kms beneath the surface. Four kilos might not be a long distance to walk, but it is a long way underground. To remove gold from such depths is an astonishing feat of engineering in the face of often arduous geology.

There have been vast improvements in safety across the industry, greatly reducing the past, shocking toll of lives lost and shattered. Working at such depths is not seen as dangerous as it once was.

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