Gold mining companies say they are looking for solutions to address a shortage of sodium cyanide, with one company pushing the industry to produce the chemical at a time when demand for gold is increasing and prices are at record levels.
Cyanide, a chemical mostly used in the extraction of precious metals including silver and gold, is in short supply after South Africa’s only producer, Sasol, declared a force majeure late last year.
Sasol said this week that the force majeure was declared in November after a breakdown in its ammonia plant had a knock-on impact on feedstock (ammonia) for cyanide production.
The company said it had kept customers abreast on this matter to ensure transparency. “Demand for sodium cyanide in South Africa far exceeds available supply, notwithstanding engaging customers on alternative supply solutions,” it said.
In 2023 the Competition Commission blocked Sasol’s bid to sell its sodium cyanide business to Draslovka, a Czech Republic producer of the compound, pointing to how the merger would have a “substantial negative effect on the public interest given its effects on the South African gold mining sector”.
Speaking after the release of the group’s financial results for the six months ended December 2025, DRDGOLD CEO Niël Pretorius said cyanide was “essential” for gold production. He said that while the company had taken proactive steps to mitigate the impact of the interruption of supply, a long-term, sustainable remedy for the gold industry to the long-standing bigger supply problem is now imperative.
We’re keen to acquire that plant as an industry and maybe partner with someone to run the plant for us. The only thing that we’re wondering is why Sasol will not sell it to us and why they are insisting on selling it to an external party — especially one that is outside of South Africa
— Niël Pretorius, DRDGOLD CEO
He said the company was engaging with gold-producing peers on possible solutions to maintain a reliable sodium cyanide supply for the industry going forward.
Pretorius told Business Times the acquisition of Sasol’s cyanide business was a possible solution. He said the group had reached out to other gold miners, and most have responded favourably. The aim was to determine, without violating competition legislation, whether it was possible to establish the sector’s own capacity to produce cyanide.
He said it was possible to import cyanide briquettes but it was expensive. However, it is a lot cheaper to produce cyanide locally because all the ingredients are available here. “We need to be nimble,” said Pretorius.
“That’s why we’re keen to acquire that plant as an industry and maybe partner with someone to run the plant for us. The only thing that we’re wondering is why Sasol will not sell it to us and why they are insisting on selling it to an external party — especially one that is outside of South Africa.”
He said while Sasol could change its strategy towards cyanide, the industry did not understand the seeming reluctance to sell it to a South African operator, given the country was the primary consumer of the product. “Hopefully someone will make the right decision. They should explain to us what their concerns are so we can address that, and then we can own that business,” he said.
With local companies increasing their output, including the plan of doubling DRDGOLD’s Far West Gold Recoveries production, there is going to be an increase in demand for cyanide.
One of the options we’re considering is to build dissolution plants on site, and convert solid briquettes to liquid for processing
— Jared Coetzer, Harmony head of investor relations
Jared Coetzer, head of investor relations at South Africa’s biggest gold mining company, Harmony, said the company sourced its cyanide from Sasol and its surface retreatment operations are the main consumer of cyanide given the high throughput of tonnes milled.
“Mine waste solutions for example, processes over 2-million tonnes of material per month from old tailings dams in the Vaal River region compared to the 500,000 tonnes processed each month by all our underground South African mines combined,” he said.
Coetzer said Harmony was working on its own risk protocols to manage the process going forward. “One of the options we’re considering is to build dissolution plants on site, and convert solid briquettes to liquid for processing. At the moment we’re limited as to how much cyanide we can keep on site by regulations.”
Earlier this month, Harmony said its recovered grades for the half year ended December 2025 were affected by “lower metallurgical recoveries and the impact of an industry‑wide cyanide shortage in South Africa".
Pan African Resources spokesperson Hethen Hir said the company had a strategy to secure cyanide supply and store it as briquettes with at least a month’s supply on hand at each of its sites.
“We’re not aware of the DRDGOLD plans, and there have been no discussions. However, we will give consideration to any proposals that will ensure the sustainability of supply for the business.”
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