Managing the Margin at Norseman, Western Australia – A Case Study

Central Norseman Gold Corporation was established in 1935 and has been mining on the Norseman field in Western Australia since then. It is Australia’s longest continuously operating gold mining operation at nearly 80 years, although it has had its periodic challenges in the intervening years.Over the last 40 years, a series of open pit mines around the Dundas Goldfield have supplied lower cost mill feed to the Phoenix Mill at Norseman from time to time but this has largely come to an end for the foreseeable future. Now that underground ore sources are once again the principal mill feed, there are several challenges to be met for an ongoing profitable operation.During the last 20 years, there have been three different owners and this has affected the manner in which the operations were managed quite significantly. These differing approaches are contrasted and examined in some detail from both the operational and financial aspects.Planning of a downsized operation to ensure sustainable profitability in the future in a mining environment where there has rarely been more than two to four years of reserves ahead of the mill for planning purposes has been a significant challenge. Several of the options examined are described, including alternatives for future mine development.CITATION:Micke, B P, 2014. Managing the margin at Norseman, Western Australia – a case study, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 119–128 (The Australasian Institute of Mining and Metallurgy: Melbourne).