Sandfire auctioning DeGrussa assets to pay down rehab bill

Sandfire Resources will begin auctioning off assets at its DeGrussa mine this week with sales to help pay down its $30 million rehabilitation bill for the operation, where two cultural heritage sites were disturbed.

An online auction of accommodation units, offices and other mining assets from the DeGrussa copper mine in the Mid West is advertised to kick off this Friday, with sales to make a “meaningful contribution” towards Sandfire’s rehabilitation effort after deciding to retain the mothballed operation following last year’s revelations.

In November, this masthead revealed the copper miner had destroyed one cultural heritage site and damaged another in 2017 and 2018, but failed to report the incident until late last year sparking outcry and calls for state government intervention.

Sandfire then stuck a deal with Yuguna-Nya Traditional Owners to work on a plan to map issues, steps and relationships to protect cultural heritage at the DeGrussa operation.

The DeGrussa operation was placed on care and maintenance in May 2023. In its latest quartely report from January, Sandfire said it determined to retain the operation to provide the “best outcome for all stakeholders” and allow the team to establish its rehabilitation credentials.

In that report, the miner said the decision also meant it would have a “meaningful presence” in the area for many years to come and that it looked forward to rebuilding its relationship with the Yugunga-Nya as it undertakes a rehabilitation process.

Further, Sandfire said it had commenced a process to “divest discrete assets within the DeGrussa operation” with the sales envisaged to “make a meaningful contribution towards rehabilitation costs".

Sandire said the rehabilitation liability for DeGrussa was estimated to be $30.1 million, as at 30 June 2023. 

The online auction is set to go live this Friday for the sale of accommodation camp buildings, offices, cribs, change rooms, containers, refuge chamber, ventilation fan and fuel tanks from the mine site. 

To be run by Ross Auctioneers & Valuers, the miner is hoping to auction off 70 transportable accommodation units, a raft of exploration offices, a reception building, ablution block, gymnasium, medical centre buildings and more. 

A Sandfire spokesperson confirmed the sales process would contribute towards its rehabilitation effort at the mine site.

“As stated publicly in recent months, Sandfire is divesting discrete assets including the construction camp, broader accommodation facilities and other surface infrastructure, providing ready-made access to important property and infrastructure to Western Australian industries,” they told Business News.

“This sales process will also make a meaningful contribution towards our rehabilitation effort at DeGrussa.  

“Our decision to retain DeGrussa and rehabilitate the operation means we will maintain an important presence in the region for decades to come and we look forward to working with government and our other stakeholders to deliver meaningful, sustainable outcomes for the community.”

In November, Sandfire confirmed two unregistered Aboriginal heritage sites surveyed by the Yugunga-Nya prior mining in 2017 had been destroyed without permits to do so.

The cultural heritage sites were described as “low-density artefact scatter”, and were disturbed in 2017 and 2018 due to what Sandfire admitted was a “series of process failures” while building the Monty satellite mine north of Meekatharra.

Aerial images showed one site appears to have been completely destroyed, and some disturbance has occurred at the second site.