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Doug Bright
West Wits Mining has taken aim at one of the market’s favourite risk topics – fuel supply – unveiling a multi-layered diesel security plan to keep its Qala Shallows underground gold operation in South Africa running smoothly while the site waits for a grid power connection.
The company says it has secured access to an estimated 163,000 litres of diesel across its on-site storage and supply arrangements – enough to cover up to 4 months of planned mining and development under current consumption profiles.
West Wits has historically maintained up to 40,000 litres on site, which it says provides around three to four weeks of operational cover. To beef up that capacity, the company is currently moving a 23,000-litre mobile storage unit to site, with installation expected to be completed in April 2026.
Upon commissioning, total on-site storage capacity is expected to increase to 63,000 litres – more than a month of diesel supply. West Wits has also lined up access to a further 100,000 litres via an alternative supplier network, with the first 23,000-litre delivery timed to coincide with the new mobile site storage coming online.
‘Operations at Qala Shallows remain on track and fully supported from a fuel and power perspective.’
West Wits Mining chief executive officer and managing director Rudi Deysel
West Wits is positioning its fuel strategy as a bridge to setting up grid mains power, with connection targeted for Q4 2026. The company expects the switch will relegate its diesel power generation to a backup role, reducing fuel burn and trimming operating costs.
Diesel fuel is expected to make up eight per cent of the company’s operating costs over the next nine months. However, management says that number could fall to three per cent once grid power is switched on, with diesel then largely reserved for the underground mining fleet.
The update lands just weeks after West Wits celebrated its first gold pour from Qala Shallows at Sibanye-Stillwater’s Ezulwini processing plant, marking a key step in the company’s evolution from developer to producer.
West Wits Mining chief executive officer and managing director Rudi Deysel said: “We are very aware of the heightened concern among investors regarding fuel security and global fuel supply volatility. Our approach has been to secure both physical on-site storage and diversified fuel supply arrangements to ensure operational continuity at Qala Shallows.”
For punters, the near-term message is simple – West Wits reckons it has enough diesel in the tank to keep development and ore deliveries on track, even if supply chains get choppy.
Either way, the company seems to have taken a sensible step early by working to reduce its reliance on diesel-powered generators later this year.
If the grid power connection is delivered as planned and the mine development ramp-up continues, West Wits’ Qala Shallows could keep building momentum after that first gold pour – with a recently updated 7.24 million ounce Witwatersrand global resource still sitting behind the newly crowned gold producer.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
