Northern Star Resources Ltd (ASX: NST) has released a Major Growth Projects Update. It covers the expanded KCGM processing plant and the Hemi Gold project. KCGM sits in Kalgoorlie, Western Australia. Investors have been waiting for a clear read on how the ramp-up is going.
The KCGM mill expansion is the centrepiece of the company’s growth plan. Commissioning is progressing, but plant performance stayed variable through October. Availability and throughput both took a hit. That matters because the expanded plant underpins Northern Star’s gold production at KCGM. A slower ramp-up pushes output further into the year.
Managing Director and CEO Suresh Vadnagra was candid about the result. Commissioning has not gone as smoothly as he would have liked. Even so, he does not consider the remaining issues fundamental.
He says confidence in the expanded plant and in KCGM’s long-term value is unchanged. Updates will follow at the Annual General Meeting on 18 November 2026 and again in early December.
Why October Fell Short at KCGM
So what went wrong? Availability measures the share of scheduled time the plant can operate. Utilisation measures how much of that time it actually runs. Several commissioning-related issues weighed on both during the month. Here is what the company pointed to:
- Intermittent problems with the mill motor control systems, which are now addressed.
- Minor rectification work on selected equipment, which is still ongoing.
- A planned 3.5-day maintenance shutdown, completed on 30 October.
- Specialist technical support and equipment vendors are now working alongside the KCGM team.
The shutdown allowed a range of remedial works and further commissioning activities. Even so, KCGM gold production for October came in below plan at 15.3koz from 766kt milled.
Production is now tracking towards the lower end of the 550-650koz guidance range. The final outcome depends mainly on the timing and pace of ramp-up over the rest of FY27. November looks better so far, with higher availability and higher average throughput rates.
Mill throughput and availability remain the key measures as the KCGM ramp-up continues. [Northern Star]
Hemi Gold Project Clears Its Primary Approvals
Now to the Hemi Gold project. It has received its primary Federal and State environmental approvals. Federal approval came under the Environment Protection and Biodiversity Conservation Act 1999. State approval came under Part IV of the Environmental Protection Act 1986. Northern Star calls the result an important milestone.
Why does it matter? Environmental approvals are a major hurdle for any new mine. Clearing them removes a big layer of regulatory risk. The job is not finished, though.
What Still Stands Between Hemi and Full Approval
Several secondary approvals are still outstanding. Work is continuing on each of them. The company has flagged these items:
- Approvals under the Mining Act 1978, the Rights in Water and Irrigation Act 1914 and Part V of the EP Act.
- Sign-off on three management plans for the main mining area.
- Completion of the Managed Aquifer Recharge Trial and the related groundwater licensing requirements.
- A separate approval pathway for the accommodation village.
The project schedule still depends on land access and regulatory processes. Both continue to progress. For now, the timing of the final approvals remains the key unknown for the Hemi Gold project.
Northern Star Gold Production Outlook for FY27
Despite the KCGM wobble, the wider picture is steady. Guidance has not changed. These are the points investors should note:
- Group production guidance remains at 1,500–1,650 koz of gold sold.
- Output is weighted to the second half, reflecting the planned KCGM ramp-up.
- The remaining operations across the portfolio are performing in line with plan.
- Mining at KCGM’s open pit and underground operations is on plan.
- ROM stockpiles keep building, giving a stock of higher-grade ore for the second half.
The immediate focus is consistent availability and utilisation. Throughput and recovery should then lift step by step.
Also Read: Five ASX Businesses, Five Growth Stories: Analysing Their Financial
FAQs
Q1: What was KCGM’s gold production in October?
A1: KCGM produced 15.3koz from 766kt milled. That was below plan.
Q2: What is Northern Star’s FY27 production guidance?
A2: Group guidance is 1,500–1,650 koz of gold sold. KCGM is tracking towards the lower end of its 550-650koz range.
Q3: When will Northern Star give its next KCGM update?
A3: Shareholders can expect the next update at the AGM on 18 November 2026. Another follows in early December, after the 3.5-day shutdown that wrapped up on 30 October.
Q4: Which approvals has the Hemi gold project received?
A4: Hemi has secured its primary approvals under the EPBC Act 1999 and Part IV of the EP Act 1986. Three management plans for the main mining area still need sign-off.
Disclaimer:
This article draws on Northern Star Resources’ Major Growth Projects Update. It offers general information only. It is not financial advice or a recommendation to buy or sell NST shares. KCGM commissioning timelines, FY27 guidance and Hemi approvals can change quickly. Please check the official ASX announcements carefully. Always speak with a licensed financial adviser before making any investment decision.
Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
