The Northern Star Resources board has approved the expansion of the Fimiston Mill, part of the Kalgoorlie Consolidated Gold Mines’ (KCGM) Super Pit.
The expansion from 13 million tonnes per annum (Mtpa) to 37Mtpa is set to cost $1.5 billion and is due to be completed in 2026.
Located at the centre of the Kalgoorlie goldfields, the Super Pit is one of Australia’s largest open pit gold mines and includes the Mt Charlotte underground mine and the Fimiston and Gidji processing plants.
“Today is an exciting day for Northern Star and a historic new chapter for this world-class asset,” Northern Star managing director Stuart Tonkin said.
“The board’s decision to approve the KCGM mill expansion and optimisation represents the next stage to revitalise our largest asset as well as the surrounding district for decades to come.
This project is financially compelling, and a significant enabling step towards delivering our strategy to generate superior returns for our shareholders.”
Northern Star has had a productive start to the year at the Super Pit, increasing gold resources to 57.4 million ounces (Moz) and keeping ore reserves steady at 20.2Moz.
Tonkin said the company is confident the site will continue to produce significant value.
“Our confidence in the economics of KCGM to remain a long-life, low-cost gold mine has been further reinforced through the feasibility study phase,” he said.
“Expanding the processing capacity of KCGM will strengthen Northern Star’s portfolio, materially increase our free cash flow generation and progress our long-term strategy to be within the 2nd quartile of the global cost curve.
“Further, the project is important in our sustainability journey and will also sustain hundreds of local jobs, economic and social investment, and local procurement opportunities in the Goldfields region.”