Rebirth of mothballed gold mine proposed for sheep-farming heartland

WA's sheep-farming heartland poised for rebirth of Katanning Gold Project Sat 4 Jul 2026 at 10:36am The reopening of a dormant gold mine in Western Australia is poised to extract billions of dollars worth of resources over the next 10 years, but residents also worry it could cause environmental damage and undercut the region's agricultural workforce. The Shire of Katanning, about 280 kilometres south of Perth, is one of the state's oldest and most productive farming regions. Home to both the largest sheep saleyard in the Southern Hemisphere and WA's biggest sheep and lamb co-operative, WAMMCO, the region is considered the heart of the state's sheep trade. Sleeping giant revived Just outside town, the rebirth of the Badgebup Gold Mine is expected to bring new industry and hundreds of workers into the rural community. The open-pit gold mine closed in the late 90s due to falling gold prices, but growing demand for the commodity and new ownership has seen it revived. Australian miner Ausgold bought into the mine in 2010 before eventually taking over and forming the Katanning Gold Project (KPG). Executive chairman John Dorward said final financing and environmental approval were still required. But the KPG was poised to reopen later this year and expected a significant return. "We're [planning to] mine approximately 140,000 ounces of gold per annum; that's the run rate," Mr Dorward said. "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." Mr Dorward said in addition to mining the existing open pits, Ausgold planned to expand the KGP into the surrounding farmland. "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," he said. "We haven't found the edges of the deposit yet, so there's more to be found." Workforce competition The return of the mine and its proposed expansion has some in the community, including farmer Scott Newby, worried that competition for services could undercut the region's long-standing agricultural workforce. "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," he said. "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." And losing the workforce was not the only concern for the generational sheep and grain farmer. The Newby family has spent decades trying to undo the damage caused by mass clearing for agriculture on its farm, replanting hundreds of hectares of native vegetation. Mr Newby said he worried the long-term environmental impact of the mine could outweigh its economic benefit. "I'm a conservationist, but I'm also a farmer in the same paddock, so I understand the balance between the economics of business and environmental benefit or cost,"he said. "We need to be just looking at four- or five-decades' time what the mine area could look like, and is that going to be, that benefit, going to be worth the short-term cost to the environmental impacts it's going to have?" A survey by Ausgold found chemical use and impact on flora and fauna as key environmental issues and concerns for the community. Katanning Land Conservation District Committee member Norman Flugge said those concerns were valid and needed to be managed. "Those impacts are very real on our soil and water resources, on our flora and fauna and on the landscape as an amenity,"he said. "We want to influence any decisions around the development of that mine to make sure those factors are considered and given the weight they deserve so that they don't get marginalised or excluded from a commercial exercise." Mr Dorward said Ausgold had consulted broadly regarding the community's environmental concerns and was partnering with a local landcare group as part of its rehabilitation plan. And while cognisant of hiring sustainably, applications would be based on merit. "Our planning has been around the idea that we will need to bring our workforce, by and large, from outside the district," he said. "Having said that … we can't rule anyone out" He said the mine would employ about 350 people for the construction phase, and maintain a workforce of about 250 once the mine was up and running. More miners, more coffee The promise of a population boost and associated economic benefits has been welcomed by others in the community. Main street cafe owner Alep Mydie saw each miner as a potential customer for his and other businesses. "Over four years, we have made and sold 240,000 coffees … the population [is] 4,100 … Imagine now that 230 or 300 extra people come to Katanning," he said. "The more population come, the more prosperity comes, the more businesses will be injected to the town. "I can't wait … We can't wait." Katanning Shire president Kristy D'Aprile said the KGP had been a long time coming and was welcomed by the wider community. She said an agreement between the shire and Ausgold to house its workers in a village being built just outside town was a win for the shire and small businesses. But she wanted the miner's investment in the community to match the scale of its operations. "There are incredible opportunities ahead for us … and what we are doing is trying to ensure that we can get Ausgold to invest in some legacy projects that will last their lifetime in Katanning and the Great Southern," she said. Mr Dorward said while the KGP had an initial mine life of 10 years, he expected the mine and Ausgold's relationship with the shire to continue well beyond.