Rebirth of mothballed gold mine proposed for sheep-farming heartland

A dormant gold mine in Western Australia's sheep-farming heartland is poised for a significant revival, with the Badgebup Gold Mine expected to extract billions of dollars worth of resources over the next 10 years. However, the proposed reopening has sparked concerns among local residents about potential environmental damage and the impact on the region's agricultural workforce.

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We're [planning to] mine approximately 140,000 ounces of gold per annum; that's the run rate. At the current gold price of around $6,000, you're looking at over a billion dollars a year in gold coming out of the ground.

The Shire of Katanning, located 280 kilometers south of Perth, is a vital agricultural hub, known for hosting the Southern Hemisphere's largest sheep saleyard and WA's biggest sheep and lamb co-operative, WAMMCO. The revival of the Badgebup Gold Mine, which closed in the late 1990s due to falling gold prices, is anticipated to introduce new industry and hundreds of jobs to the rural community.

Australian miner Ausgold, which took over the mine in 2010 and formed the Katanning Gold Project (KPG), is awaiting final financing and environmental approvals. Executive chairman John Dorward predicts the mine will produce approximately 140,000 ounces of gold annually, potentially generating over a billion dollars per year at current gold prices. Ausgold also plans to expand operations into surrounding farmland, as exploration drilling suggests the deposit's full extent has not yet been discovered.

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We've got this really nice patch of paradise down here where we control the prospective rock, so the idea is to justify the Katanning Gold Project with what we have today and step out and explore in more detail the surrounding areas in the exploration licence. We haven't found the edges of the deposit yet, so there's more to be found.

Despite the economic prospects, some community members, like farmer Scott Newby, worry about increased competition for essential services and labor. Newby expressed concern that the mining industry might attract workers with skills also vital to agriculture, potentially disrupting the local support network for farming operations. He highlighted the risk of delays in repairs for agricultural equipment, which could impact the critical windows for farming activities.

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Our ag support is all based in town … they're the same people with the same skills that the mining industry is going to want; I certainly haven't got a mining budget to back me in our industry. We're an industry that requires repairs when it breaks, not three weeks later because the window of opportunity for what you're doing passed.