Northern Star Resources is working to stabilise its expanded KCGM processing plant in Western Australia after commissioning problems cut into October output. The plant produced 15,300 ounces from 766,000 tonnes of ore processed during the month, with intermittent mill motor control problems and equipment rectification work reducing availability and throughput. A planned three and a half day maintenance shutdown completed on October 30 was used for further remedial and commissioning work.
The company said the motor control issues have been resolved and that early November brought greater stability, with higher availability and average throughput rates. Even so, KCGM is now tracking towards the lower end of Northern Star’s FY27 production guidance of 550,000 to 650,000 ounces, with the final outcome dependent on the pace of the ramp up. Mining in the open pit and underground performed to plan and higher grade ore stockpiles are building ahead of the expected second half ramp.
Managing director Suresh Vadnagra said the commissioning issues identified so far are not fundamental and do not change the company’s confidence in the expanded plant or in KCGM’s long term value. Northern Star maintained group gold sales guidance of 1.5 million to 1.65 million ounces for FY27, weighted to the second half, and will update on commissioning again at its annual general meeting on November 18 and in early December.
In parallel, the Hemi gold project received its primary federal approval under the Environment Protection and Biodiversity Conservation Act and its state approval under Western Australia’s Environmental Protection Act. Secondary approvals remain outstanding, including mining and water licences, management plans for the main mining area, groundwater licensing and land access arrangements, and the development schedule remains subject to them.