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    KCGM expansion under Northern Star: production and cost outlook for mine planners

    August 4, 2026|

    Reviewed by Joe Ashwell

    KCGM expansion under Northern Star: production and cost outlook for mine planners

    First reported on MINING.com

    30 Second Briefing

    Northern Star Resources has completed a A$1.6 billion, three-year expansion at KCGM in Kalgoorlie, more than doubling processing capacity from 13Mtpa to 27Mtpa via a new Fimiston plant that will integrate the old Gidji facility, with full ramp-up expected over about two years. The operation moved a record 88Mtpa of open pit material and 3.2Mtpa underground in the year to 30 June, producing 467,642oz at AISC of A$2,495/oz. KCGM is ultimately targeted to deliver 900,000oz per year at AISC of A$1,425/oz, supported by new renewable energy and higher Super Pit and underground throughput.

    Technical Brief

    • Stage 1 of the KCGM expansion replaces about 85% of the legacy processing plant.
    • Stage 2 will decommission and integrate the separate Gidji plant into the expanded Fimiston facility.
    • Site leadership expects new renewable power sources plus the modernised plant to deliver “significant” unit cost reductions.
    • KCGM’s resource base has grown from 12Moz to 42Moz Au, and reserves from 6.3Moz to 15Moz Au, since Northern Star’s acquisition.

    Our Take

    Elliott Investment Management’s A$1 billion-plus stake in Northern Star Resources, previously reported as about 4% of the register, means any capital allocation around the A$1.6 billion KCGM mill expansion will be scrutinised by one of the company’s largest and most activist shareholders.

    The upcoming handover from Stuart Tonkin to former Glencore executive Suresh Vadnagra on 5 October, flagged in earlier coverage, aligns the KCGM ramp-up with a CEO who has deep bulk and complex processing experience, which is likely to shape how Northern Star sequences the 27 Mtpa build-out and underground–open pit interface at the Super Pit.

    With KCGM and the Golden Mile now a recurring subject in our gold coverage, Northern Star’s record 88 Mtpa open-pit and 3.2 Mtpa underground movements place it at the upper end of Australian hard-rock gold operations by material moved, which in practice gives it more flexibility to respond to activist pressure through mine plan optimisation rather than asset sales.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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