Australian Super Pit Gold Mine Operations Set to Be Extended

   By Rhiannon Hoyle 
 

SYDNEY--Barrick Gold Corp. (ABX) and Newmont Mining Corp.'s (NEM) giant Super Pit mine in Western Australia could continue processing gold for the next 15 years under plans unveiled Wednesday that will extend the life of the operation.

Kalgoorlie Consolidated Gold Mines, which operates the site for the 50-50 joint-venture partners, said it might keep the complex running until 2029, as it looks to process more low-grade stockpiles of the precious metal. Under prior plans, processing at the Super Pit--one of the world's largest gold mines--would have ended in 2021.

The proposed extension contrasts with moves by global mining companies to sell operations and focus on the best quality material after a sharp slide in gold prices. Barrick, the world's largest gold mining company by production, has reported billions of dollars worth of write-downs against its assets and slashed its return to shareholders after a sudden halt to the precious metal's 12-year bull run.

"Of course this [timetable] may change, as the economical viability of any project can fluctuate due to external factors such as gold price, taxes, labor costs and so on," the mine operator's general manager, Russell Cole, said in a statement.

The Super Pit operations--which produce around 800,000 ounces of gold a year--run 24 hours a day, every day of the year, according to the operator's website. Australia is the world's second-largest producer of gold, behind China.

Write to Rhiannon Hoyle at [e-mail]

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