Kalgoorlie leaders praise Northern Star as deal to bring Super Pit gold mine into 100 per cent WA hands looms
Kalgoorlie-Boulder’s Super Pit could be back in West Australian hands by the New Year.
Rumours Northern Star Resources was launching a bid for US-based Newmont Goldcorp’s 50 per cent stake in Australia’s most famous hole in the ground yesterday reached fever pitch.
That came after the Bill Beament-led miner went into a trading halt pending an announcement relating to a “potential significant transaction”.
If the deal goes ahead, it will be the first time in KCGM’s 30-year history the Super Pit will be back in WA hands since the late Alan Bond acquired a group of leases in the 1980s with plans to build a massive open pit mine.
And the companies that will own the asset are led by two WA School of Mines graduates in Mr Beament and Saracen Minerals boss Raleigh Finlayson.
The Weekend West revealed on Saturday claims by two sources last week that Northen Star had clinched a deal to buy Newmont’s stake.
The Kalgoorlie Miner understands after this month snapping up Echo Resources, the Super Pit was the only other significant acquisition on Northern Star’s radar.
The Australian Financial Review yesterday reported it was understood brokers were finalising details around pricing and structure with a deal expected to launch today.
They are great supporters of the Kalgoorlie campus of the school of mines. When you get people leading the way, you will find other graduates will follow
Talk of Northern Star’s claims on the Super Pit swirled at the annual Diggers and Dealers Mining Forum in Kalgoorlie in August but that was shot down by the company.
Later that month, Barrick chief executive Mark Bristow outed Northern Star as “one of the front-runners” in the race to grab the Canada-based Barrick Gold’s Super Pit stake.
But WA gold miner Saracen swooped in to seal the $1.1 billion deal on November 29 ,with Mr Finlayson saying he predicted the Super Pit had a mine life that will run for “many more decades”.
Saracen’s stake in the Golden Mile was welcomed by many in the community, buoyed by the fairytale-like script of a boy from the Goldfields taking a lead role at Australia’s most famous gold mining operation.
But the fairytale script could be even sweeter if Northern Star closes the deal.
With Saracen typically thought of as an open pit miner and Northern Star regarded as specialists in underground operations, the companies would appear to be natural bedfellows.
Future plans for the Golden Mile include a cut back to the south of the pit complemented by higher-grade ore from underground.
City of Kalgoorlie-Boulder Mayor John Bowler yesterday said if the deal materialised, it would be a promising outcome for the community.
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“I have a strong regard for Bill Beament and Ral Finlayson and their commitment to the local community,” he said.
“They are great supporters of the Kalgoorlie campus of the school of mines. When you get people leading the way, you will find other graduates will follow.
“I have said before and I will say it again, Ral and Bill are the new Sir Laurence Brodie-Halls of their generation.”
Mr Bowler said though he felt KCGM did better than some other mining companies in insisting on a largely residential workforce, he felt they could do better.
“The closer to the mine that the main decision-making is made I believe the better for our community,” he said.
“When you’ve got in the last decade or so, ownership in Canada and America, I don’t think they’ve been as responsive to community aspirations and demands.”
News of a possible deal was welcomed by Curtin University WA school of mines director Sabina Shugg.
State member for Kalgoorlie Kyran O’Donnell added his voice in support of the acquisition, stating it would be “outstanding” for WA.
Those two gentlemen there are pro-local, pro-Goldfields and pro Western Australia. It is the best thing that could happen
“Both Bill Beament and Raleigh Finlayson are fine upstanding members of our community,” he said.
“Those two gentlemen there are pro-local, pro-Goldfields and pro Western Australia. It is the best thing that could happen.”
Mr O’Donnell said he hoped there would be healthy rivalry between Northern Star and Saracen
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