KCGM expansion under Northern Star: production and cost outlook for mine planners
Reviewed by Joe Ashwell
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.
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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