History of the Super Pit
In 1988, Bond International Gold (BIG), a company listed on the New York Stock Exchange and controlled by WA businessman Alan Bond, bought effective control of the Golden mile through a majority shareholding in Gold Mines of Kalgoorlie (GMK), BIG also had large mines in Canada, the USA and Chile.
The idea of creating one big pit was widely attacked, the concept was ridiculed, and reserves questioned, but despite the hostile environment, work commenced. With the exception of the Mt Charlotte mine, underground operations were phased out, the pre strip commenced for the new open cut and the Fimiston processing plant and Gidji roasters were constructed.
On the 15th April 1989 discussions were concluded with Homestake Gold of Australia (HGAL) to sell half Bond Gold Australia’s interest in GMK for A$90m to create a 50/50 joint venture. Coinciding with that agreement, HGAL and GMK made a tender offer for all the shares of North Kalgurlie Mines Ltd (NKM) to consolidate the assets.
The new partners recognized that the JV structure would lack flexibility and not have the ability to offer a single career path to staff. At a dinner following the 15th April signing, it was agreed that the venture should be named Kalgoorlie Consolidated Gold Mines (KCGM) with responsibility to manage the Super Pit, Mt Charlotte, the Aroya, Croesus, Mt Percy mine and mill, the new Fimiston mill and roasters.
On the 27th August 1989, Bond Gold Australia sold control of GMK to a subsidiary of Poseidon Ltd.
This information is based on a true recollection of Alan Birchmore, former CEO of Bond International Gold (BIG) and the years he worked there.
In December 2001 Canadian company Barrick Gold Corporation merged with Homestake and a few months later, in February 2002, Normandy merged with Newmont Mining Corporation.
In 2017, KCGM poured its 20 millionth ounce of gold. KCGM, which accounts for about eight per cent of Australia’s gold output, only relinquished its long-held status as Australia’s biggest gold producer to Newmont Goldcorp’s Boddington Gold Mine in the final quarter of 2012.
Since its discovery, the Golden Mile has produced approximately 60 million ounces and in 2014 held its position as the fifth largest gold producing region in the world. Today KCGM’s operations contribute to Australia’s position as the second biggest gold producer in the world, second only to China.
The Fimiston Open Pit, at 3.5 kilometres long, 1.5 kilometres wide and more than 600 metres deep, draws thousands of tourists to the Goldfields each year.
In 2014 KCGM commemorated its 25th Anniversary of operating on the Golden Mile with publication of a hard cover book. KCGM: A Celebration of 25 Years tells the story from the early days of the Golden Mile, through KCGM’s formation to the present day.
The book is available for sale from Hannans North Tourist Mine and The Eastern Goldfields Historical Society.
In November 2019, Saracen Mineral Holdings Limited purchased Barrick Gold Corporation’s 50% stake in KCGM. In January 2020, Newmont Goldcorp sold its 50% share of the operations to Northern Star Resources Limited.
With Joint Venture Owners Saracen Mineral Holdings Limited and Northern Star Resources Limited, KCGM was 100% Australian owned for the first time in its 31 year history.
A Merger of Equals was announced in October 2020, where JV owners Saracen Mineral Holdings Limited and Northern Star Resources Limited realised their synergies. On the 12th February 2021 the merge was complete, and for the first time KCGM and the famous Golden Mile was owned by one company Northern Star Resources Limited .