Norton opens $40m base-load mine

Chinese-backed miner Norton Gold Fields has opened its $40 million Enterprise base-load mine on the outskirts of Kalgoorlie.

The open-pit project will supply the bulk of ore to the company’s 3.3 million ounces per annum Paddington mill, and contribute an estimated 110,000 ounces of gold per annum to Norton's total output. Full production is expected by the last quarter of 2013.

Norton chief executive Dianmin Chen said the opening of the site was a significant milestone in growing the company’s gold production output.

“With a higher grade than the current base-load operation, Enterprise will allow us to both increase the Paddington operation’s gold production and at the same time reduce unit costs,” he said.

Norton Gold Fields is 89 per cent owned by China's largest gold producer, Zijin Mining Group.

Mines and Petroleum Minister Bill Marmion said the mine opening showed continuing confidence in the gold sector from investors.

“This move solidifies Western Australia’s reputation as a global mining investment destination, and I welcome Norton Gold Field’s position as a long-term WA gold miner,” he said.

“While the price of gold has taken a modest drop during the past year, the current price is still around 60 per cent higher than the 10-year average - something that is certainly driving development like this from Norton Gold Fields.” 

Shares in gold producers have been on the slide in recent months as the price of gold has fallen to near $US1,400/oz.

The site will employ 80 staff for the next five years.