Expansion at KCGM super pit
The KCGM Super Pit, located in Kalgoorlie, Western Australia, is one of the largest open-pit gold mines in the world.
This iconic gold mine has been in operation for over three decades and is currently owned and operated by Northern Star Resources Limited (ASX: NST).
The Super Pit has produced more than 21moz of gold since it began operation in 1989.
The mine is located in the heart of the WA Goldfields and is a significant contributor to the regional economy.
Northern Star Resources is now preparing for a growth project at KCGM operations called ‘Fimiston South’, which will extend the life of the mine to 2034.
Overview of KCGM
Since start of operation, KCGM has been a key player in the Australian gold mining industry.
The processing plant at Fimiston is an integral component of the production, with the capacity to treat over 13mt of ore from both the Fimiston and Mt Charlotte mines.
Commissioned in 1989, the plant has undergone two significant expansions since then and is now one of the largest milling complexes in Australia.
The mine has three large-scale production centres in world-class locations, and Northern Star is increasing mine life in existing mines and investing in expansions and new fleets to maximise efficiencies.
Northern Star Resources chairman Michael Chaney says the company’s operational teams across Kalgoorlie, Yandal and Pogo have met the challenge to deliver a significantly stronger business with a bright outlook.
Geology
The Kalgoorlie Goldfields, part of the Norseman- Wiluna Belt, is home to one of the world’s richest gold deposits, the Golden Mile.
The deposit consists of over 1,000 individual ore lodes, primarily hosted in the Golden Mile Dolerite formation, with two main styles of mineralisation – the classic Golden Mile lodes and the younger white quartz veins found at Mt Charlotte.
The area is over 5km long, 1km wide, and more than 1km deep.
Northern Star Resources has reported significant growth in gold sold, generating cash earnings of over $1bin the financial year ending June 2022.
The mine has been a significant contributor to the Australian gold mining industry, and despite facing cost pressures and skill shortages, the outlook for the company remains positive.
Exploration and Growth
Northern Star’s plans for exploration and growth, including the expansion of the mine in forthcoming years, are crucial for the long-term sustainability of the mine.
“[Northern Star is] currently focused on opportunities to lower the costs of production, simplify the business with the purpose of generating superior returns for our shareholders, and progressing projects to achieve reduction in reliance on carbon-based energy sources,” said Mr Chaney.
The company has made significant progress in these areas, as evidenced by its strong financial performance.
In FY22, Northern Star sold 1.56mozof gold and generated cash earnings of over $1b. The company’s Mineral Resources total 56.4moz and its Ore Reserves total 20.7moz.
Northern Star’s executives have expressed confidence in the company’s growth prospects, “We are increasing mine life in our existing mines and investing in expansions and new fleets to maximise efficiencies,” said Mr Chaney.
The company’s focus on cost reduction and efficiency improvements is expected to support its long-term growth and profitability.
Fimiston South and the Future of the Mine Northern Star Resources Limited is set to commence a growth project at KCGM Operations called ‘Fimiston South’ in 2023.
This project will be located at the southern end of the Fimiston Open Pit and will consist of two cutbacks – the ‘Great Boulder’ cutback and the ‘Ivanhoe’ cutback.
The project is expected to extend KCGM Operations’ mine life to 2034, which will bring benefits to the Kalgoorlie-Boulder community and sustain hundreds of local jobs.
Northern Star has carried out extensive environmental studies as part of the project, with comprehensive environmental management plans in place to mitigate potential impacts.
The company referred the project to the WA Environmental Protection Authority in October 2022 for assessment and approval.
Northern Star has also conducted various other environmental studies, including flora and fauna, greenhouse gas emissions, and air quality studies.
The company will continue to monitor and manage the mining operations and environmental impacts through its existing Environmental Management Plans.
As part of the project, the Super Pit Lookout will be relocated, with construction of the new lookout set to commence in 2023.
Northern Star will work closely with stakeholders throughout the project, which will involve open pit blasting that may temporarily close a small section of the Goldfields
Highway during the first 12 months of the project.
The KCGM Super Pit has been a key player in the Australian gold mining industry for over three decades, and Northern Star Resources’ plans for exploration and growth, including the expansion of the mine with the Fimiston South project, are crucial for the long-term sustainability of the mine.
