Western Australian Shire Sells Controversial Mining Camp for $22 Million to Boost Finances
A significant financial manoeuvre is underway in Western Australia’s Goldfields region, with the Shire of Coolgardie agreeing to a $22.05 million sale of its controversial Bluebush Village mining camp. This sale marks a pivotal step in the Shire’s ambitious plan to tackle substantial debts, which had previously prompted a show-cause notice from the local government minister. The 328-bed facility, located in Kambalda approximately 630 kilometres east of Perth, will be acquired by ASX-listed gold miner Westgold Resources.
The comprehensive sale package, secured through a public tender process, not only includes the existing village but also encompasses 9,835 square metres of adjacent undeveloped land. This additional parcel is earmarked for future expansions, demonstrating Westgold’s commitment to growth in the area. The decision to proceed with the sale was met with unanimous support from the Shire’s councillors during a meeting on Tuesday night. This endorsement followed a recommendation from acting CEO Sabine Taylor, who lauded the Westgold bid as representing “the greatest value for money” for the Shire.
Debt Reduction and Financial Rejuvenation
The proceeds from the sale are earmarked to significantly reduce the Shire’s considerable debt burden. At the close of January, the Shire’s total liabilities stood at a staggering $25.4 million. Shire president Paul Wilcox elaborated on the financial implications, stating that while the current debt specifically tied to the camp amounts to approximately $16 million, the sale will also enable the resolution of several other outstanding debts.
“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,” Wilcox explained. He further highlighted the long-term vision, adding, “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.”
Wilcox acknowledged that the Shire faces ongoing scrutiny and has substantial work ahead. However, he expressed optimism that this sale represents a crucial stride towards financial recovery and aims to restore community confidence in the council’s leadership.
The Shire engaged in an extensive public consultation period prior to the decision, holding three community forums and receiving three public submissions regarding the proposed sale. While one submission opposed the transaction in its entirety, two long-term residents, Marilyn Ward and Jan McLeod, voiced support for selling the existing camp but expressed reservations about the sale of the neighbouring undeveloped land.
Ministerial Support and Progress
The sale comes after a period of intense scrutiny from the state government. In October of the previous year, Local Government Minister Hannah Beazley issued a 12-month ultimatum to the Shire, demanding that its finances be brought into order. Failure to do so could have led to drastic measures, including a potential merger with the City of Kalgoorlie-Boulder.
Minister Beazley has publicly endorsed the Bluebush Village sale, commending the Shire’s new leadership for demonstrating tangible progress. In a recent interview, she noted that the Shire is actively meeting the agreed-upon milestones, including providing monthly financial updates.
“The Shire of Coolgardie are currently meeting the milestones that we have put in place for them, so that’s really good news,” Beazley stated. She cautioned, however, that “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 in Kambalda
For Westgold Resources, the acquisition of Bluebush Village is a strategic move that complements its significant investment in the Kambalda mining district. The company has already poured over $100 million into the Beta Hunt gold mine since acquiring it in 2024 through a $2.2 billion merger with Canada’s Karora Resources.
Westgold managing director Wayne Bramwell highlighted the operational inefficiencies of housing its 400-strong Beta Hunt workforce across three separate accommodation facilities. “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 explained.
He emphasised that the Shire’s sale of the camp demonstrates Westgold’s commitment to the region. “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 acquisition follows closely on the heels of Westgold’s approval of a $145 million expansion for its Higginsville processing plant, located 80 kilometres south of Beta Hunt. This expansion will see the plant’s annual capacity increase from 1.6 million tonnes to 2.6 million tonnes, signalling a robust future for the company’s operations in the Kambalda area.
