Western Australian Council Sells Controversial Mining Camp for $22 Million to Bolster Finances
A significant financial move has been made by the Shire of Coolgardie in Western Australia’s Goldfields, with the council greenlighting the sale of the 328-bed Bluebush Village in Kambalda for a substantial $22.05 million. This decision is a pivotal step in the Shire’s ambitious plan to tackle its considerable debt burden, a situation that last year saw it receive a show-cause notice from the local government minister.
The village, located approximately 630 kilometres east of Perth, will be acquired by ASX-listed gold miner Westgold Resources. The sale, which was finalised through a public tender process, also encompasses adjacent undeveloped land measuring 9,835 square metres. This additional parcel is earmarked for future expansion possibilities by the mining company.
Councillors cast a unanimous vote on Tuesday night to endorse the sale, acting on the recommendation of acting CEO Sabine Taylor. Taylor lauded the Westgold bid, characterising it as offering “the greatest value for money” for the Shire.
Addressing a Multi-Million Dollar Debt
The sale proceeds are earmarked to significantly reduce the Shire’s outstanding debts, which stood at a staggering $25.4 million as of the end of January. Westgold Resources has already lodged a deposit of $441,000, with the transaction expected to reach settlement in the coming weeks.
Following an extensive period of public consultation, which included three community forums, the Shire received a modest three submissions from the public regarding the proposed sale. One of these submissions voiced outright opposition to the transaction in any form.
Two long-term residents, Marilyn Ward and Jan McLeod, expressed their support for the sale of the existing camp facilities but conveyed reservations about the inclusion of the neighbouring undeveloped land in the deal.
Shire president Paul Wilcox elaborated on the financial implications of the sale. “We have to go through the process of settlement and ensure contracts are in order, but essentially the current debt associated with the camp is about $16 million, and we also have several other debts which we can look at resolving,” he stated.
Wilcox further emphasised the broader financial strategy: “As a result of this process, we will review our entire long-term financial plan to get a full picture of where we sit financially in terms of the future. We don’t expect any less scrutiny over time; we have a lot more work to do, but I believe this is a significant step in leading us towards the right direction and restoring some vital confidence in council from the community.”
Ministerial Support and Progress
Last October, Local Government Minister Hannah Beazley issued a 12-month ultimatum to the Shire of Coolgardie, demanding that its finances be brought into order. Failure to comply could have led to a range of interventions, including a potential merger with the City of Kalgoorlie-Boulder.
Minister Beazley has publicly backed the sale of Bluebush Village, noting in a recent interview that the Shire’s renewed leadership is demonstrating tangible progress. This includes the consistent delivery of monthly financial updates, which are being closely monitored by the state government.
“The Shire of Coolgardie are currently meeting the milestones that we have put in place for them, so that’s really good news,” Minister Beazley commented. “They are not out of the woods yet. They are halfway through a 12-month journey, at which point we will reassess. So I’m looking forward to seeing what they can achieve over the next six months, but we continue to keep an incredibly close eye on the Shire.”
Westgold’s Strategic Expansion Plans
Westgold Resources’ acquisition of Bluebush Village is a strategic move that aligns with its substantial investment in the Kambalda region. The company has already committed over $100 million to its Beta Hunt gold mine, a significant undertaking following its $2.2 billion merger with Canada’s Karora Resources in 2024.
Westgold managing director Wayne Bramwell highlighted the operational inefficiencies of the current accommodation arrangements for the Beta Hunt workforce, which numbers around 400. He explained that the workforce is currently dispersed across three separate facilities, a situation he described as “inefficient.”
“Having a single camp, which we can expand, is key to being able to leverage the capital we’ve already invested into Beta Hunt,” Bramwell stated. “The Shire of Coolgardie can see that we’re committing capital to this region, and making a $22 million commitment is a very visible way of showing that we’ve got bigger plans for Kambalda.”
This strategic acquisition of accommodation facilities comes just weeks after Westgold approved a significant $145 million expansion of its Higginsville processing plant. Located approximately 80 kilometres south of Beta Hunt, this expansion will boost the plant’s capacity from its current 1.6 million tonnes per annum to 2.6 million tonnes per annum.
