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Gold mining in Western Australia

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Main article: Mining in Western Australia
Gold mining in Western Australia
Position of Western Australia within Australia highlighted
Location
StateWestern Australia
CountryAustralia
Regulatory authority
AuthorityDepartment of Mines, Industry Regulation and Safety
Websitehttp://www.dmp.wa.gov.au/index.aspx
Production
CommodityGold
ProductionDecrease 6.8 million troy ounces (212.5 tonnes)
ValueIncrease A$18.6 billion
EmployeesDecrease 29,257 (FTE)[1]
Year2022–23[1]

Gold mining in Western Australia is the third largest commodity sector in Western Australia (WA), behind iron ore and LNG, with a value of A$17 billion in 2021–22. The 6.9 million troy ounces (214 tonnes) sold during this time period was the highest amount in 20 years and accounted for almost 70 percent of all gold sold in Australia.[2]

Gold mining in Western Australia dates back to the 1880s but became a significant industry in the 1890s, following gold discoveries at Coolgardie in 1892 and Kalgoorlie in 1893. It reached an early peak in 1903, experienced a revival in the 1930s and a further revival in the 1980s. Between, the industry declined a number of times, such as during the two world wars, experiencing an absolute low point in 1976.[3]

History

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See also: History of Western Australia and Western Australian gold rush

Early history

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class=notpageimage|
Major gold mining locations in Western Australia with Perth as a reference

Until the 1880s, the economy of WA was based on wheat, meat and wool. A major change in the colony's fortunes occurred when gold was discovered, and prospectors by the tens of thousands swarmed across the land in a desperate attempt to discover new goldfields.

The first gold rush occurred in 1885 when Charles Hall discovered alluvial gold in the Kimberley region, near the future site of a town named after him. Further alluvial finds occurred across the state during the following five years, with finds in Marble Bar, Southern Cross and Yalgoo. From these discoveries, the prospectors moved further afield.

In 1890, gold was discovered in the Norseman region at Dundas, 22 kilometres (14 mi) south of present-day Norseman, followed in 1894 by a gold discovery near the future town of Norseman itself, by prospector Laurie Sinclair, who named the deposit after his horse, Hardy Norseman.[4][5]

In 1891, the rush to the Murchison goldfields began when Tom Cue discovered gold at the town which now bears his name. In the years that followed, gold towns such as Abbots, Austin, Barrambie, Big Bell, Day Dawn, Garden Gully, Lennonville, Moyagee, Munarra, Nannine, Peak Hill, Pinnacles, Reedy and Rothsay flourished, only to be abandoned when the mines were worked out.

The major discovery at Coolgardie in 1892, by William Ford and Arthur Bayley, set off a new gold rush. This was accelerated by the discovery the following year by Paddy Hannan, Tom Flanagan and Dan Shea of gold at Kalgoorlie. These early discoveries in the Eastern Goldfields sparked a true gold rush.

Sons of Gwalia Gold Mine, c. 1921

In 1896, the Sons of Gwalia mine, named after an archaic Welsh name for Wales, Gwalia, was established[6] by Welsh miners. Herbert Hoover, the later President of the United States, served as the mine manager in its early days from May to November 1898.[6][7]

In 1896, gold was discovered in the Wiluna region, which was then known as Lake Way, by three prospectors, George Woodley, James Wotton and Jimmy Lennon.[8] On 29 December 1897, a 460-troy-ounce (14 kg) nugget was found in Wiluna, then the largest found in the colony of Australia. The location of its discovery was later to become the spot for the powerhouse of the Wiluna Gold Mine Limited, the operators of the early mine.[9]

By the end of the 1890s, more than a third of the colony's population was located in the Eastern Goldfields. The political influence of this population was demonstrated in proposals that the region should become a new, separate colony, with a name such as Auralia, and Coolgardie or Kalgoorlie as its capital. These campaigns accelerated when there was opposition in Perth to Australian Federation. There were calls for "Auralia" to join federation as a separate state.[10]

In many cases, the boom was short-lived, with towns and mines in the Goldfields disappearing quickly, once the surface deposits were depleted. Only where larger companies developed in underground mining did towns survive. By 1903, the gold mining industry in Western Australia reached its peak, and population of the Goldfields started to decline again.[3]

First World War

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The decline of the gold mining industry in Western Australia was reinforced with the outbreak of the First World War. The effects of the war, a large number of miners enlisted in the armed forces and a drying up of overseas investment meant that, by 1920, gold production in the state had fallen to a third of what it was at the height of the boom. A large number of mines in the state had been closed.[3]

Great Depression

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Western Australian gold mining received a boost in the 1930s from the Great Depression. The gold price rose once more, the Commonwealth Government determined to pay a gold bonus and foreign investment increased. Gold mining towns like Wiluna or Kalgoorlie experienced a revival from entrepreneurs like Claude de Bernales.[11] The discovery of the Golden Eagle nugget at Coolgardie in 1931, at the time the largest ever found in Western Australia, attracted many prospectors to return to the state.[3]

Second World War

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The boom started during the Great Depression was short-lived, with the outbreak of the Second World War, the gold mining industry declined once more, for very similar reasons as it had at the beginning of the First World War.[3]

Post-war

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Gold mining temporarily recovered after the war but by the mid-1960s, mining declined once more. By 1976, the Western Australian gold mining industry reached its low point, with production at a level of one tenth of the production in 1900. The Goldfields mining industry was saved by the discovery of Nickel in the region and, by the mid-1980s, gold mining was on the up again, too. New technologies led to the reopening of many mines. Where, at the turn of the 19th century, mining was only profitable at above 15 grams per tonne (0.11 gr/lb) of gold per ore, mines could now operate profitably on grades as low as 1 gram per tonne (0.0070 gr/lb). Mines like the Super Pit at Kalgoorlie now incorporate many former surface and underground operations in one large open pit.[3]

In the more remote mining locations of Western Australia, the work force however has moved away from being residential to a fly-in fly-out roster. This led to the former mining towns not sharing the current boom, with most of the work force residing in Perth, Kalgoorlie or even the capital cities on the east coast and in nearby Indonesia. Population and services in the Goldfields towns are far short of what they were during the golden era of the 1930s.[12]

Current situation

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See also: Economy of Western Australia
KCGM's Super Pit gold mine on the Golden Mile.

Western Australia produced over 50% ($69.5 billion) of all Australian mineral and petroleum sales, which made up 88% of the state's merchandise exports in 2015–16. In 2015–16, gold was ranked third in the list of resources exported by Western Australia with regard to value, behind iron ore and petroleum, with a value of A$10 billion. The state produced 6.27 million troy ounces of gold, or 195 tonnes, 6% of world production. During 2014-15 the Western Australian gold mining industry directly employed 19,175 people.[13][14]

By 2008–09, gold had jumped into fourth spot in regards to export value with a value of A$5.2 billion, overtaking alumina. The average gold price was US$874 per ounce in 2008–09, or A$1,171 per ounce, which was 28 per cent higher than the previous year.[15] While the value of sales increased by 25%, the gold output of the state decreased by 4%, to 4.4 million ounces. Western Australia accounted for 62% of Australia's gold production in 2008–09.[16]

In 2008–09, 41% of Western Australia's gold exports went to the United Kingdom, followed by India with 34%. Thailand and the United Arab Emirates hold third spot jointly, with an 8% share.[17]

The Golden Mile, producing 20 tonnes of gold, was Western Australia's top-producing mine in 2008–09, followed by the Telfer with 18.1 tonnes and St Ives with 13.4 tonnes. With a project cost of US$2.9 billion, the Boddington Gold Mine is by far the biggest gold project to commence production in the state in 2009, being capable of produce 900,000 ounces of gold per annum.[17]

The number of people employed in the Western Australian gold mining industry rose to 36,087 in 2021–22.[2]

Safety

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Main article: Fatality statistics in the Western Australian mining industry

Since the late 1960s, when the Department of Mines began categorising fatalities by commodity, until 2019, 143 work-related fatalities have occurred in the gold mining industry in Western Australia.[18]

In the decade from 2001 to 2010, 14 employees lost their lives in the state's gold mining industry. From 2011 to 2019 there were seven gold mining-related fatalities, with 2017 and 2012 the last fatality-free years.[18]

In 2017–2018 the injury incidence rate (lost time injuries per hundred employees) for the Mining Industry division was 1.39—less than Manufacturing (2.41), Agriculture, Forestry and Fishing (2.17), Construction (1.90), Transport, Postal and Wharehousing (1.84), and Wholesale Trade (1.82).[19]

Gold production

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Main article: List of active gold mines in Western Australia
Major West Australian commodities in 2022

Gold production in Western Australia begun in the 1890s, reaching its first peak in 1903, with over 50 tonnes of gold produced annually. Production gradually fell to reach a first low in the late 1920s. At that point, Western Australia was almost the only state in Australia to still produce gold. Production rose once more during the Great Depression, to reach a second peak in 1939.[20]

After a short slump during the war, gold production remained relatively steady until the mid-1960s. From there, it fell to levels not seen since the late 1890s, to reach a low point in 1976. It remained low until the mid-1980s, when a new gold boom hit the state.[20] By 1990, production hit 150 tonnes of gold per year, three times the previous peak of 1903. It reached an all-time record in 2001 with close to 250 tonnes of gold produced that year. Production in 2009 has declined to 142 tonnes per annum.[21]

World gold mine production was at a record in 2001 with 2,640 tonnes produced. Production has fallen since, to 2,415 tonnes in 2008. World gold production is expected to rise in 2009–10, with Australia scheduled to increase production by 15 percent.[20]

As of 2022, Newmont's Boddington gold mine, located in Western Australia, is Australia's biggest producing gold mine.[22]

Statistics

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Quarterly expenditure ($millions) on exploration for gold in Western Australia since 1988
Western Australian gold production and value from 2000 to 2022

Annual statistics for the Western Australian gold mining industry:[1][2][23][24][25][26][27][28]

Subject 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Production (kg/annum) 161,790 181,170 182,040 179,800 193,600 187,850 205,890 228,020 239,460 220,820
Production value (A$ billion) 2.60 2.76 2.69 2.83 3.42 3.13 3.40 3.41 3.47 3.24
Subject 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Production (kg/annum) 204,960 201,210 185,000 187,240 177,010 167,350 166,170 161,770 141,480 136,610
Production value (A$ billion) 2.95 3.25 3.28 3.44 3.11 3.02 3.71 4.22 4.14 5.23
Employees 10,879 11,938 12,653 12,801 13,398 12,121 12,314 13,733 14,459 16,686
Subject 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Production (kg/annum) 163,830 183,800 180,390 178,680 196,074 193,162 195,968 203,003 212,060 211,534
Production value (A$ billion) 6.55 8.19 9.40 8.97 8.89 9.11 10.11 10.86 11.42 11.96
Employees 16,997 18,859 22,439 20,541 17,337 19,587 23,556 27,075 29,266 31,369
Subject 2020 2021 2022 2023
Production (kg/annum) 212,142 207,567 213,757 212,465
Production value (A$ billion) 15.87 16.57 17.37 18.59
Employees (Full time) 26,287 28,419 30,764 29,257
Employees (all personnel on site) 31,679 34,153 36,087 [1]

See also

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Further reading

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  • Garrick Moore: Mining towns of Western Australia, published: 1997, ISBN 1-875449-34-5
  • Franklin White. Miner with a Heart of Gold - Biography of a Mineral Science and Engineering Educator. FriesenPress. 2020. ISBN 978-1-5255-7765-9 (Hardcover) ISBN 978-1-5255-7766-6 (Paperback) ISBN 978-1-5255-7767-3 (eBook).

Notes

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  • ^[1] Full time employees only. Up until 2022, the Western Australian Mineral and Petroleum Statistics Digest listed a combined figure of both full time employees and on-site personnel but the latter was not included in the 2022–23 edition, which only listed full time employees.

References

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  1. ^ a b Western Australian Mineral and Petroleum Statistics Digest 2022-23 Department of Mines, Industry Regulation and Safety, accessed: 1 June 2024
  2. ^ a b c Western Australian Mineral and Petroleum Statistics Digest 2021-22 Department of Mines, Industry Regulation and Safety, accessed: 3 March 2023
  3. ^ a b c d e f Mining towns of Western Australia, page: 48
  4. ^ The Norseman Project Archived 17 January 2010 at the Wayback Machine Norseman Gold website, accessed: 30 December 2009
  5. ^ History Shire of Dundas website, accessed: 30 December 2009
  6. ^ a b Gwalia Historic Site - History Archived 10 January 2010 at the Wayback Machine accessed: 4 September 2009
  7. ^ St Barbara website - Leonora Archived 5 January 2010 at the Wayback Machine accessed: 3 September 2009
  8. ^ Wiluna – Edge of the desert, author: Phil Heydon, publisher: Hesperian Press, published: 1996, page: IV, accessed: 23 March 2003
  9. ^ Wiluna – Edge of the desert, author: Phil Heydon, publisher: Hesperian Press, published: 1996, page: 15, accessed: 23 March 2003
  10. ^ Mining towns of Western Australia, page: 45
  11. ^ Wiluna and the Goldfields. Chapter 3 in: Franklin White. Miner with a Heart of Gold - Biography of a Mineral Science and Engineering Educator. ISBN 978-1-5255-7765-9 (Hardcover) ISBN 978-1-5255-7766-6 (Paperback) ISBN 978-1-5255-7767-3 (eBook). FriesenPress. 2020.
  12. ^ Mining towns of Western Australia, page: 93
  13. ^ "Mineral and Petroleum Industry 2015-16 review". Perth, WA: Department of Minerals and Petroleum, Government of Western Australia. 2016. Retrieved 24 October 2016.
  14. ^ "Western Australian Mineral and Petroleum Statistics Digest 2014–15" (PDF). Perth, WA: Department of Minerals and Petroleum, Government of Western Australia. Retrieved 24 October 2016.
  15. ^ Western Australian Resources Industry Continues to Grow – Overview 2008-09 Department of Mines and Petroleum website, accessed: 14 January 2010
  16. ^ Western Australian Mineral and Petroleum Statistics Digest 2008-09 page: 29, accessed: 16 January 2010
  17. ^ a b Western Australian Mineral and Petroleum Statistics Digest 2008-09 page: 30, accessed: 16 January 2010
  18. ^ a b Western Australian mining fatalities database Archived 25 February 2011 at the Wayback Machine accessed: 19 February 2011
  19. ^ "Key OSH Statistics, Western Australia, Work-related lost time injuries, diseases and fatalities in Western Australia" (PDF). WorkSafe. East Perth, WA: Government of Western Australia Department of Mines, Industry Regulation and Safety. October 2019. p. 8. Retrieved 17 January 2020.
  20. ^ a b c Western Australian Mineral and Petroleum Statistics Digest 2008-09 page: 31, Gold production graph, accessed: 6 February 2010
  21. ^ Western Australian Mineral and Petroleum Statistics Digest 2009 page: 20, Gold production graph, accessed: 6 February 2010
  22. ^ Lucas, Jarrod (5 March 2023). "Foreign ownership of gold mines would rise above 50pc if Newmont-Newcrest deal goes ahead, analyst says". ABC Goldfields. Retrieved 5 March 2023.
  23. ^ Western Australian Mineral and Petroleum Statistics Digest 2020-21 Department of Mines, Industry Regulation and Safety, accessed: 25 March 2022
  24. ^ Western Australian Mineral and Petroleum Statistics Digest 2019-20 Department of Mines, Industry Regulation and Safety, accessed: 31 March 2022
  25. ^ Western Australian Mineral and Petroleum Statistics Digest 2012-13 Department of Mines, Industry Regulation and Safety, accessed: 12 March 2023
  26. ^ Western Australian Mineral and Petroleum Statistics Digest 2002-03 Department of Mines, Industry Regulation and Safety, accessed: 12 March 2023
  27. ^ Western Australian Mineral and Petroleum Statistics Digest 1998-99 Department of Mines, Industry Regulation and Safety, accessed: 31 March 2023
  28. ^ 2017 Economic indicators resources data Department of Mines, Industry Regulation and Safety, accessed: 30 May 2018
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