What's Happening?
DRDGOLD, a Johannesburg- and New York-listed company, has announced plans to invest R7.8 billion in its Big Five capital growth projects. These projects are part of the company's Vision 2028 strategy, aimed at extending the life-of-mine by at least 20 years for operations on the East Rand and Far West Rand. The investment will increase throughput to three million tons a month, boost gold production to over 200,000 ounces per year, and reduce the environmental footprint. The expansion includes resuming deposition on the Daggafontein tailings storage facility and constructing the new Withok tailings storage facility, which will hold 310 million tons of material. The Far West Gold Recoveries operation will also see an increase in throughput capacity with the construction of a new Regional tailings storage facility.
Why It's Important?
This investment is significant for DRDGOLD as it aims to secure long-term sustainability and profitability by extending the life-of-mine and increasing production capacity. The expansion projects are expected to enhance the company's operational efficiency and environmental management, potentially leading to increased gold output and reduced ecological impact. The strategic focus on increasing deposition capacity and throughput aligns with global trends in resource management and sustainability. Stakeholders, including investors and local communities, stand to benefit from the economic and social impacts of these projects, which promise job creation and infrastructure development.
What's Next?
DRDGOLD plans to commence deposition on the Daggafontein tailings storage facility by the first quarter of the 2027 financial year. The company anticipates that it will take approximately three years before commissioning the new facilities. The expansion of the Far West Gold Recoveries operation is underway, with the construction of the Regional tailings storage facility expected to be completed in the first quarter of 2027. These developments will likely attract attention from investors and industry stakeholders, as DRDGOLD positions itself as a leader in sustainable mining practices.
