South Kalgoorlie Gold Mine
Encyclopedia
The South Kalgoorlie Gold Mine is a gold mine
located south-west of Kalgoorlie
, Western Australia
. The mine is sometimes also referred to as South Kal Mines - New Celebration, being a merger of the former New Celebration Gold Mine and the Jubilee Gold Mine, which were combined in 2002.
It was operated by Dioro Exploration NL, who purchased the mine from South Kal Mines Pty Ltd in December 2007, until April 2010, when Avoca succeeded in its bit for Dioro and Dioro was delisted from the ASX.
Dioro had been the subject of a takeover
war between Avoca Resources Limited
and Ramelius Resources from mid-2009 onwards. Avoca eventually had to drop its bid for Dioro, having reached a 44.85% interest in Dioro at the close of the offer on 20 August, short of the 50% needed. Ramelius's offer for the company closed on 8 February 2010. Avoca made a renewed takeover offer for the company in late December 2009.
in January 1994. It was then owned by Normandy until April 1996, when it was acquired by New Hampton Goldfields Limited, which, in turn, was taken over by Harmony Gold
in April 2001 for A$54 million.
in April 1991. New Celebration became a subsidiary of Hill 50 Gold in August 2001, when Newcrest sold the mine for A$10 million.
Harmony announced a take over bid for Hill 50 Gold Limited in December 2001 and compulsory acquired outstanding Hill 50 shares and listed options in April 2002, after achieving a 99% interest in the company. Harmony paid A$233 million for this acquisition.
South Kal became part of Harmony's Australian operations, consisting of Hill 50, the Hill 50 Gold Mine
, the Big Bell Gold Mine
(closed June 2003) and the Gidgee Gold Mine
(sold in December 2003).
In December 2007, Harmony in turn sold the operation to Dioro Exploration NL.
Dioro settled the purchase of the mine on 30 November 2007. Harmony Gold
received A$45 million for the operations, of which $25 million were in cash while the remainder was paid in Dioro shares.
Dioro suffered a number of set-backs at its South Kal mine, when, on two occasions, major pit wall collapses interrupted mining. These events, in October 2008 at the Mt Marion pit and in January 2009 at the HBJ pit, made access to high-grade ore temporarily impossible and affected operational cash flow for more than six months.
Ore from the South Kalgoorlie mine is processed at the nearby Dioro-owned Jubilee Mill, commissioned in 1987, which also processes ore from the Frog's Leg Gold Mine
, which Dioro owns 49% of. The former New Celebration plant, which functioned as the processing facility for the mine, was sold to Integra Mining in May 2006 for A$3 million. Integra removed the processing plant by May 2008, to use it at its new Randalls Gold Mine
.
The South Kal operation, together with Dioro's 49% stake in the Frog's Leg mine were part of a takeover war between Avoca Resources and Ramelius Resources. Avoca, owner of the Higginsville Gold Mine
and Ramelius, owner of the Wattle Dam Gold Mine
, both in the area south of Kalgoorlie, were both interested in acquiring Dioro to combine their existing operations with Dioro's. After a failed bit by Avoca in August 2009 and a subsequent extension to the bit by Ramelius, Avoca made a new offer for Dioro on 29 December 2009, despite having earlier declared that its August bit was final.
Gold mining
Gold mining is the removal of gold from the ground. There are several techniques and processes by which gold may be extracted from the earth.-History:...
located south-west of Kalgoorlie
Kalgoorlie, Western Australia
Kalgoorlie, known as Kalgoorlie-Boulder, is a town in the Goldfields-Esperance region of Western Australia, and is located east-northeast of state capital Perth at the end of the Great Eastern Highway...
, Western Australia
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
. The mine is sometimes also referred to as South Kal Mines - New Celebration, being a merger of the former New Celebration Gold Mine and the Jubilee Gold Mine, which were combined in 2002.
It was operated by Dioro Exploration NL, who purchased the mine from South Kal Mines Pty Ltd in December 2007, until April 2010, when Avoca succeeded in its bit for Dioro and Dioro was delisted from the ASX.
Dioro had been the subject of a takeover
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
war between Avoca Resources Limited
Avoca Resources Limited
Avoca Resources Limited was an Australian gold mining company, based in Perth, Western Australia. It merged in with Anatolia Minerals Development Limited in 2011 to form Alacer Gold....
and Ramelius Resources from mid-2009 onwards. Avoca eventually had to drop its bid for Dioro, having reached a 44.85% interest in Dioro at the close of the offer on 20 August, short of the 50% needed. Ramelius's offer for the company closed on 8 February 2010. Avoca made a renewed takeover offer for the company in late December 2009.
Jubilee
Originally owned by Hampton Australia, the mine was taken over by Normandy MiningNormandy Mining
Normandy Mining was an Australian mining company which predominantly mined gold. Normandy was, during much of the late 20th century, Australia's largest gold miner....
in January 1994. It was then owned by Normandy until April 1996, when it was acquired by New Hampton Goldfields Limited, which, in turn, was taken over by Harmony Gold
Harmony Gold (mining)
Harmony Gold is the third largest gold mining company in South Africa , the 12th largest in the world and the 5th largest gold producer in the world. Harmony and its subsidiaries conduct underground and surface gold mining and related activities, including exploration, processing, smelting and...
in April 2001 for A$54 million.
New Celebration
Originally owned by Newmont Australia Ltd, the mine became part of Newcrest Mining LtdNewcrest Mining
Newcrest Mining Limited engages in the exploration, development, mining and sale of gold and gold-copper concentrate. Newcrest is an Australian based Company which initially incorporated in Victoria in 1980. Today it has become Australia’s leading gold mining company...
in April 1991. New Celebration became a subsidiary of Hill 50 Gold in August 2001, when Newcrest sold the mine for A$10 million.
Harmony announced a take over bid for Hill 50 Gold Limited in December 2001 and compulsory acquired outstanding Hill 50 shares and listed options in April 2002, after achieving a 99% interest in the company. Harmony paid A$233 million for this acquisition.
South Kal
Harmony merged the New Celebration and the Jubilee operations to form South Kal in 2002.South Kal became part of Harmony's Australian operations, consisting of Hill 50, the Hill 50 Gold Mine
Hill 50 Gold Mine
The Hill 50 Gold Mine is a gold mine located 4 km north-west of Mount Magnet, Western Australia. The mine was, until July 2010, owned by Harmony Gold and had been placed in care and maintenance since 2007...
, the Big Bell Gold Mine
Big Bell Gold Mine
The Big Bell Gold Mine is a gold mine located at Big Bell, 24 km north-west of Cue, Western Australia. The mine was owned and operated by Harmony Gold at the time of its closure in June 2003, having produced 2.6 million ounces of gold during its lifetime, but was sold to Aragon Resources...
(closed June 2003) and the Gidgee Gold Mine
Gidgee Gold Mine
The Gidgee Gold Mine is a gold mine in Western Australia, 82 km north of the town of Sandstone. The mine was, until recently, owned by APEX Minerals NL, but purchased by Panoramic Resources in February 2011. The mine is currently in care and maintenance....
(sold in December 2003).
In December 2007, Harmony in turn sold the operation to Dioro Exploration NL.
Dioro settled the purchase of the mine on 30 November 2007. Harmony Gold
Harmony Gold (mining)
Harmony Gold is the third largest gold mining company in South Africa , the 12th largest in the world and the 5th largest gold producer in the world. Harmony and its subsidiaries conduct underground and surface gold mining and related activities, including exploration, processing, smelting and...
received A$45 million for the operations, of which $25 million were in cash while the remainder was paid in Dioro shares.
Dioro suffered a number of set-backs at its South Kal mine, when, on two occasions, major pit wall collapses interrupted mining. These events, in October 2008 at the Mt Marion pit and in January 2009 at the HBJ pit, made access to high-grade ore temporarily impossible and affected operational cash flow for more than six months.
Ore from the South Kalgoorlie mine is processed at the nearby Dioro-owned Jubilee Mill, commissioned in 1987, which also processes ore from the Frog's Leg Gold Mine
Frog's Leg Gold Mine
The Frog's Leg Gold Mine is a gold mine located 19 km west of Kalgoorlie, Western Australia.It is jointly owned by La Mancha Resources and Avoca Resources Limited .-History:...
, which Dioro owns 49% of. The former New Celebration plant, which functioned as the processing facility for the mine, was sold to Integra Mining in May 2006 for A$3 million. Integra removed the processing plant by May 2008, to use it at its new Randalls Gold Mine
Randalls Gold Mine
The Randalls Gold Mine is a gold mine, recently developed, located 36 km east-north-east of Kambalda, Western Australia, near Mount Monger Station...
.
The South Kal operation, together with Dioro's 49% stake in the Frog's Leg mine were part of a takeover war between Avoca Resources and Ramelius Resources. Avoca, owner of the Higginsville Gold Mine
Higginsville Gold Mine
The Higginsville Gold Mine is a gold mine located near Higginsville, 45 km north of Norseman, Western Australia.It is currently owned by Avoca Resources Limited. Avoca has made headlines in 2009 when it became engaged in a bitter dispute with Ramelius Resources over conflicting takeover bids...
and Ramelius, owner of the Wattle Dam Gold Mine
Wattle Dam Gold Mine
The Wattle Dam Gold Mine is a gold mine located 25 km south west of Kambalda, Western Australia.It is currently owned by Ramelius Resources...
, both in the area south of Kalgoorlie, were both interested in acquiring Dioro to combine their existing operations with Dioro's. After a failed bit by Avoca in August 2009 and a subsequent extension to the bit by Ramelius, Avoca made a new offer for Dioro on 29 December 2009, despite having earlier declared that its August bit was final.
New Celebration
| Year | Gold production |
Grade | Cost per ounce |
| 2000 | 74,311 ounces | 4.0 g/t | A$370 |
| 2001 | 80,556 ounces | 4.25 g/t | |
| 2002 3 | 74,883 ounces | 3.68 g/t | A$365 |
Jubilee
| Year | Gold production |
Grade | Cost per ounce |
| 2000 | 90,362 ounces | 2.8 g/t | A$413 |
| 2001 | |||
| 2002 |
South Kal
| Year 1 2 | Gold production |
Grade | Cost per ounce |
| 2003 | 509,654 ounces | 2.22 g/t | |
| 2004 | 338,272 ounces | 2.2 g/t | US$326 |
| 2005 | 296,848 ounces | 2.5 g/t | US$338 |
| 2006 | 231,517 ounces | 2.33 g/t | US$419 |
| 2007 | 224,797 ounces | 2.36 g/t | US$513 |
| 2007-08 | 41,973 ounces | 1.99 g/t | |
| 2008-09 | 34,766 ounces | 1.5 g/t |
- 1 2007-08 figures are for Dioro ownership only, compromising the time from 1 December 2007 to 31 August 2008. Dioro's financial year runs from 1 September to 31 August.
- 2 Result for Harmony's combined Australian operations, consisting of South Kalgoorlie, the Hill 50 Gold MineHill 50 Gold MineThe Hill 50 Gold Mine is a gold mine located 4 km north-west of Mount Magnet, Western Australia. The mine was, until July 2010, owned by Harmony Gold and had been placed in care and maintenance since 2007...
, the Big Bell Gold MineBig Bell Gold MineThe Big Bell Gold Mine is a gold mine located at Big Bell, 24 km north-west of Cue, Western Australia. The mine was owned and operated by Harmony Gold at the time of its closure in June 2003, having produced 2.6 million ounces of gold during its lifetime, but was sold to Aragon Resources...
(closed June 2003) and the Gidgee Gold MineGidgee Gold MineThe Gidgee Gold Mine is a gold mine in Western Australia, 82 km north of the town of Sandstone. The mine was, until recently, owned by APEX Minerals NL, but purchased by Panoramic Resources in February 2011. The mine is currently in care and maintenance....
(sold in December 2003). - 3 Figures for January to September 2002 only.
Sources
- The Australian Mines Handbook: 2003-2004 Edition, Louthean Media Pty Ltd, Editor: Ross Louthean
- Western Australian Mineral and Petroleum Statistics Digest 2008 Page 34: Principal Mineral and Petroleum Producers - Gold