Location Feysville, Kalgoorlie Country Australia Financial year 2008-09 Company RNC Minerals | State Western Australia Production 34,766 Website RNC Minerals website Opened 1987 | |
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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.
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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 bid 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.
Jubilee
Originally owned by Hampton Australia, the mine was taken over by Normandy Mining 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.
New Celebration
Originally owned by Newmont Australia Ltd, the mine became part of Newcrest Mining Ltd 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, 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 bid by Avoca in August 2009 and a subsequent extension to the bid by Ramelius, Avoca made a new offer for Dioro on 29 December 2009, despite having earlier declared that its August bid was final.
Production
Production figures for the mine: