As operator of the largest gold mine in Australia, Kalgoorlie Consolidated Gold Mines has a positive approach towards sustainability, its employees and the surrounding community. Andrew Pelis finds out more
Western Australia is a vast, arid region that on the face of it offers little encouragement for prosperity. Yet in 1893, the discovery of gold near Kalgoorlie-Boulder was the catalyst for an oasis.
Since 1893, when Irishman Paddy Hannan first made his famous discovery, more than 55 million ounces of gold have been mined from what became known as the Golden Mile. For many years the site was split up into various mining activities, until businessman Alan Bond (of America’s Cup fame), began buying up the individual leases to create one big pit, in order to mine the area far more economically.
Bond failed to complete the takeover but in 1989, the entire area was combined as a single, amalgamated site (the Super Pit) under the management of Kalgoorlie Consolidated Gold Mines Pty Ltd (KCGM) to manage the assets and operations of joint venture partners Normandy Ltd and Homestake Gold of Australia Limited.
Today the Fimiston Open Pit, colloquially known as the Super Pit, is Australia's largest open cut gold mine. It is located off the Goldfields Highway on the south-east edge of Kalgoorlie-Boulder, Western Australia. “We are a twenty-one year old gold mine and we also mine a small amount of silver,” says Russell Cole, general manager at the Super Pit. “Today we’re a fifty/fifty joint venture between Barrick Gold Corporation and Newmont Mining Corporation.”
The Super Pit is currently the largest gold producing mine in Australia—it is 3.7 kilometres long, 1.6 kilometres wide and will have a depth of 660 metres when finished. “We also operate an underground mine at Mount Charlotte that runs to a depth of 1.2 kilometres, which has been functional for 48 years,” says Cole.
KCGM currently produces up to 800,000 ounces of gold each year, with the on-site process plant working through 13.5 million tonnes annually. Cole cites historical activities as one of the major current operational challenges. “We are the fourth generation of mining to go through the area—there has been lots of mining activity here over the last 110 years. A significant amount of alluvial work and underground mining took place in the past and the old pits do present an extra hazard to us; we run three extra drill rigs to confirm where the old holes are located.”
However, KCGM has been able to draw on the considerable experience of the two corporations that own the venture, implementing safety measures to world class standards. “We have two owners and each has its own unique initiatives on safety and continuous improvement—it’s a luxury having two corporate offices to draw on. We also follow ISO standards,” explains Cole.
An important part of that process is ensuring that KCGM’s 700-strong workforce (as well as its 400 long-term contractors) is well-informed on operational developments and how they impact upon safety and the environment. “We run training courses, with the majority done in-house,” Cole explains. “We have an integrated approach with regular refresher courses covering safety and operations, environmental and community relations training—our view is that you need to develop your workforce.”
Staff retention can be a challenge but Cole suggests KCGM has a unique advantage in terms of recruitment. “We are potentially entering another boom cycle and we insulate ourselves a little bit having a large city close by. Most of the other sites around the country are remote and we are able to recruit people that want to live in the city.”
Part of the company’s drive to develop its workforce has been to instil a distinctive set of company values. “We have six core values that embody all that we do and we say to our workforce that if any activity doesn’t align with our company values, we question whether we should be doing it.”
These core values are a very important part of KCGM and the foundations upon which its culture is built. “They have been designed to create a clear understanding of what is important, valued and acceptable at KCGM and cover good practices in safety, the environment and social responsibility; an ‘ownership of the company’ mindset and an awareness of the need to act with a sense of urgency in a safe, timely manner,” Cole affirms.
Investment in fleet at KCGM is currently continuing apace, with plans to acquire six new trucks and two new hydraulic shovels in the next twelve months, adding to an impressive range of trucks, shovels, wheel holders, graders and wheel dozers. Cole says there are a number of suppliers who operate an on-site service, providing maintenance on their machines.
With a long-term investment approach from its owners, KCGM recently announced it has extended the mine life out to 2021, following extensive consultation with the local community. “We have just started the last of the cutbacks involving cutting back one side of the pit; and the exploration department is looking at ways to further extend the mine life,” Cole explains.
He is quick to reassure that any future expansion will not adversely impact near neighbours. “There is an urban myth that the gold seam runs underneath the city, but in reality it runs from north to south. We have a good, positive relationship with the local community, and we take great care to ensure that our operations don’t impact upon them.”
Existing planning indicates the Super Pit will close in 2021, and the company is investigating ways to economically extend the life of the mine beyond that date. However, the company recognises the importance of involving the local community in the closure conversation. “We are at the point where we have a long-term sustainability programme, but our main focus is to define where the end of the mine life could be and to talk to people about what the site could be when we leave.
“Talking about closure will help us understand important community views on what KCGM should be doing to ensure that if we do close, our withdrawal from the community is done in an agreed way with agreed outcomes,” he concludes. http://superpit.com.au
