Kalgoorlie Earthquake Closes Barrick-Owned Gold Mine

KALGOORLIE Apr. 20 -- An earthquake that hit Kalgoorlie, a Western Australian town at the center of the state's gold and nickel industries, has shut the area's biggest mining operation, part-owned by Barrick Gold Corp.

The Super Pit, which produces as much as 850,000 ounces of gold a year, was evacuated and is initially expected to be closed for four to six hours, said Holly Phillips, a spokeswoman for operator Kalgoorlie Consolidated Gold Mines Ltd., in a phone interview from the town. The mine, about 600 kilometers (373 miles) east of Perth, is jointly owned by Toronto-based Barrick, the world's largest gold producer, and Newmont Mining Corp., the largest U.S. miner of the metal.

The 5 Richter scale magnitude earthquake, which occurred as close as 1 kilometer (0.6 mile) from the center of Kalgoorlie at about 8:20 a.m. local time, damaged about six older hotels, the state's Fire & Emergency Services Authority said in a statement. There have been no reports of people trapped or injured. Schools have been damaged, ABC Radio reported.

"There's extensive damage," Kalgoorlie Mayor Ron Yuryevich told the radio station. At least one house has been destroyed by fire, he said.

Gold Discoveries

Kalgoorlie was founded in the 1890s to take advantage of the region's gold discoveries. Since 1893, more than 50 million ounces of bullion have been extracted from the area.

Chris Williams, Panoramic Resources Ltd.'s general manager of operations, said the company's Lanfranchi nickel operations, about 120 kilometers away from Kalgoorlie, "didn't feel a thing."

Minara Resources Ltd., Australia's second-largest nickel producer, said its Murrin Murrin nickel operations weren't affected, according to company spokesman David Griffiths.

BHP Billiton Ltd.'s Nickel West Leinster operations, partially closed after a fatality on April 11, haven't been affected by today's earthquake, it said in an e-mail. Seismic tremors at Leinster caused rock falls in mid-2009, the world's biggest mining company said previously.

Mincor Resources NL Managing Director David Moore wasn't immediately available to comment on whether the Perth-based company's nickel operations near Kalgoorlie had been affected.