Name of the Project
KCGM mill optimisation project.

Location
Kalgoorlie, Western Australia.

Project Owner/s
Northern Star Resources.

Project Description
KCGM is one of the world’s biggest and most significant gold mines with a mineral resource of 28.3-million ounces and an ore reserve of 12.2-million ounces, supporting a mine life of more than 20 years.

The project will increase and modernise KCGM’s processing capacity from 13-million tonnes a year to 27-million tonnes a year.

The new plant will have a high level of process automation, control and condition monitoring. Further, increasing the plant throughput, combined with simplifying the existing flowsheet, will also deliver several other benefits, including a sustainable reduction in unit rate processing costs, a reduction in fixed operating costs, a 50% reduction in potable water use per tonne of ore processed, the conversion of stockpiles to cash with improved margin and a reduction in the sustaining capital on a dollar-per-ounce basis.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an internal rate of return of 19%, with a payback of 4.6 years.

Capital Expenditure
A$1.5-billion.

Planned Start/End Date
The project will take three years to complete. Ramp-up is scheduled from 2027 towards steady state in 2029.

Latest Developments
Northern Star Resources has approved a A$1.5-billion investment in the KCGM mill expansion project.

The project would be fully funded by cash on hand and forecast cash flows, Northern Star has said, with the company’s balance sheet forecast to remain strong, with all current banking covenants and financial targets comfortably met over the expected three-year build phase. 

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Northern Star Resources, tel +61 6188 2100 or email info@nsrltd.com.