Pan African Resources Completes Feasibility Study for Soweto Tailings Project
Pan African Resources PLC has completed a definitive feasibility study on its Soweto Tailings Retreatment project in South Africa. The study outlines plans to nearly double gold production from the Mogale complex, with annual output expected between 35,000 and 40,000 ounces over approximately 15 years. This would bring peak production at the wider Mogale Tailings Retreatment site up to around 100,000 ounces per year. The project involves retreating tailings from the Soweto Cluster containing roughly 0.98 million ounces of gold and will include a new retreatment circuit with shared infrastructure to reduce capital costs. The estimated capital cost was reduced by R718 million through value engineering, bringing it down to approximately R3.68 billion ($216 million). At current gold prices, the project is expected to deliver strong financial returns including an internal rate of return of 29.55% and a payback period of about three years after commissioning. Construction could begin in late 2026 following final investment approval, with environmental authorizations anticipated by early 2027. The project is also expected to contribute positively to the environment through accelerated rehabilitation efforts on the West Rand.
Topics: feasibility study gold production mining expansion tailings retreatment