DRDGOLD eyes acquisition of Sasol cyanide plant

DRDGOLD CEO Niël Pretorius warned that South Africa’s gold producers face growing risks from shortages of sodium cyanide, a chemical essential for extracting gold. Sasol, the country’s only manufacturer, no longer sees cyanide production as a core business. 

Pretorius proposed that a group of South African gold producers acquire the plant from Sasol and bring in a chemical company to operate it. 

“Supply has been a challenge for a long time,” Pretorius said, noting that a critical shortage emerged at the end of 2025 after Sasol declared force majeure, temporarily disrupting deliveries.

He added that demand is rising due to expanded gold dump retreatment operations by DRDGOLD, Harmony Gold, and Pan African Resources. 

“A long-term, reliable solution is now necessary,” Pretorius said. “We are engaging with peers to maintain access to sodium cyanide for our industry.” 

He emphasized that DRDGOLD does not aim to profit from cyanide production. “We need access to a stable, affordable supply. Sasol has other priorities and tried to sell the plant to Draslovka Holdings. We objected to that.”

DRDGOLD challenges Sasol cyanide merger

In October 2023, the Competition Tribunal blocked Sasol’s planned merger of its sodium cyanide business with the South African subsidiary of Draslovka, a Czech producer. The Competition Commission had warned that the deal could harm the local gold sector. 

Pretorius said DRDGOLD opposed the merger because Draslovka’s pricing model relied on import costs for chemicals that are produced locally. “We showed that the financial model could threaten our future viability,” he said. 

He added that DRDGOLD is seeking a legal, collaborative approach among local mining companies, similar to the Rand Refinery model. “The goal is to acquire the plant and bring in a chemical partner willing to produce cyanide in South Africa.”

DRDGOLD posts strong six-months growth

DRDGOLD, listed on the JSE and NYSE, has been operating in South Africa for more than 130 years. The company specializes in reprocessing old mine waste, primarily through its Ergo and Far West Gold Recoveries operations, focusing on environmental remediation and circular-economy mining. 

Under Pretorius, DRDGOLD reported revenue of R5.05 billion ($316.2 million) for the six months ending 31 December 2025, a 33% rise from the previous year, while headline earnings nearly doubled to R1.93 billion ($120.8 million). 

Pretorius, who has led DRDGOLD since 2009, also serves on the Minerals Council South Africa and the World Gold Council, representing DRDGOLD in global industry discussions.

Sasol earnings drop sharply

Meanwhile, Sasol, a global chemicals and energy company, saw headline earnings fall 34% to R5.76 billion ($360.3 million) for the six months ended 31 December 2025, pressured by weaker global commodity prices and broader economic conditions.