A date of completion has been tentatively set for the 50-million-ounce-plus Golden Mile that no Kalgoorlie resident thought would ever run out of gold.
A date of completion has been tentatively set for the 50-million-ounce-plus Golden Mile that no Kalgoorlie resident thought would ever run out of gold.
It is likely no further open pit mining will take place in the Super Pit after 2017, according to Kalgoorlie Consolidated Gold Mines, which operates the Super Pit for owners Newmont Australia Ltd and Barrick Gold of Australia Ltd.
Development after 2017 will either be underground at the Super Pit, or north ‘along strike’ at the scaled-back Mt Charlotte underground mine to the north, or on other nearby tenements.
KCGM is also considering the option of toll treating ore to extend the mine’s life.
But the deadline, despite the huge historical implications, appears to have caused very little dismay among Kalgoorlie residents.
Kalgoorlie-Boulder Chamber of Commerce and Industry chief executive officer Hugh Gallagher says the city was now a regional support centre and no longer reliant on the Golden Mile.
Many locals regard the potential influence on Kalgoorlie of a project such as BHP Billiton’s Ravensthorpe nickel project, located outside the region, as more profound.
Ravensthorpe, ramping up to production, is believed to be a potential drain from Kalgoorlie of skilled mining labour attracted to seaside living. The skills shortage is a threat Kalgoorlie’s mining industry is confronting now.
The closure of the Super Pit is 12 years away and KCGM acknowledges that circumstances could change in that time and mine life could be extended. By the same token, the mine’s end could come sooner.
The company is not going to make the mistake of underestimating future public feeling about the issue. After all, the project produces 850,000 ounces of gold a year and puts more than $255 million into the local economy through wages and payments to suppliers. It pays $12 million a year in gold royalties, which is more than half the total amount paid by gold producers operating in the Kalgoorlie local government area.
Last year, KCGM released a concept plan that provided in detail a description of the last years of the operation’s life, including what regulatory approvals it needs to realise a further 12 years of life.
If approvals are granted, KCGM will extend the western side of the Super Pit, which is the side that abuts the Kalgoorlie-Boulder township. The company will need to move closer to houses a bund wall that protects residents from mining noise.
A complicating factor is a plan to run a tourist train called the Loopline along the top of the bund, which would offer views of the Super Pit and over the city.
KCGM has sought separate approval for realignment of the bund ahead of the rest of changes in order to accelerate with the Loopline Society’s plans.
The rail, linking the twin townships of Kalgoorlie and Boulder, is expected to be a huge attraction. The Super Pit itself is a tourist magnet, believed to be the biggest attraction in Kalgoorlie, and it is unclear how its closure will affect tourism.
The company needs to start the western extension within two years in order to make it economically viable. The plan also includes extension of waste dumps and the possible recommissioning of the Kaltails project to store additional tailings.
KCGM will not release projections of operating costs for the last phase of the Super Pit’s life, but says the Golden Pike cutback, which it has named the western extension, is not a “golden goose”.
KCGM general manager Cobb Johnstone said the concept plan had delivered the added benefit of focusing mine employees’ attention on how to extend mine life beyond 2017.
But its designed purpose was to provide answers to questions Kalgoorlie residents commonly asked of the company, such as how long is the life of the Super Pit and what will it look like in its final form.
For the record, the pit will be 3.8 kilometres long, 1.35 km wide and more than 500 metres deep.
Where the production comes from that will eventually replace the Super Pit’s output is anyone’s guess.
Placer Dome is about to launch the 500,000 ounce Raleigh project, west of the city, into production.
