Australia’s gold mining industry just got a massive boost, with expansion of a key gold mine receiving approval which will result in the creation of new jobs in construction.

One of New South Wales’ largest gold mines has been given Federal Government approval to expand further. This is despite concerns about encroachment on the state’s biggest inland lake. The expansion just one of a raft of new mining industry projects, enhancing the career prospects of those in the industry.

So what benefits will the expansion deliver and are there any concerns?

Why is the expansion important?

The Lake Cowal gold mine, is located 350km west of Sydney, near West Wyalong. Since 2015, it has been operated by Evolution Mining.

The company said the mine generated a record 312,644 ounces of gold last financial year. Production at the facility is projected to increase to 315,000 to 335,000 ounces in the coming financial year.

As part of the approval, the open cut pit will be extended further into Lake Cowal. Three new pits will also be dug with open pit mining extended for a further decade. The mine’s overall lifecycle has been extended to 2042.

The Federal Government’s decision to grant approval to the expansion follows the NSW government’s decision to approve the proposal in December last year.

So what benefits will the expansion deliver and are there any concerns?

What impact will the expansion have?

The positive economic impacts of the mine’s expansion are expected to be significant.

According to the company, the mine’s expansion will inject about $900 million into the state’s economy over its lifetime. It will produce about 1.6 million ounces of gold and 1.5 million ounces of silver.

It is estimated the expansion could generate $56 million in royalties and employ an additional 64 people during construction.

The gold mine currently employs about 400 people, most of these from the Central West region of New South Wales.

Are there any concerns?

Environmental advocates are concerned about the potential impact of the project. A key concern is that it will encroach on the natural environment surrounding the lake. Currently, the mine covers 132 hectares of the lake’s 13,500 hectares. The expansion will increase this to about 500 hectares.

A major concern is the potential impact on bird breeding season at the lake. During the breeding season, the lake can host up to 50,000 water birds. Experts are also concerned it could disturb land that is classified as a key fish habitat.

However, Evolution Mining has pledged to adhere to all environmental conditions attached to the expansion’s approval.

“We are committed to meeting all approval conditions, including biodiversity protection measures, environmental offsets, and ongoing compliance reporting,” said the mine’s general manager Joe Mammen.

In its environmental impact statement, the company said there had not been a noticeable decline in the number or diversity of birds in the area since the mine became operational in 2005.

The Federal Department Of Climate Change, Energy, the Environment And Water says it approved the extension with strict conditions to protect important habitats for threatened and migratory species.

Among the environmental mitigation measures will be an expansion of a protection wall that separates the mine and the lake to over 6 kilometres in length.

It’s expected Evolution Mining will grant final approval to the extension at its board meeting later this year, delivering a significant socio-economic boost to the Central West region.

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Article References

Evolution Mining (n.d) ‘Cowal’, Evolution Mining, accessed 11 March 2025.

Otway, L (28 February 2025) ‘Lake Cowal gold mine expansion approved by federal government’, ABC News, accessed 11 March 2025.

Tibben, K (11 December 2024) ‘Cowal mine golden until 2042‘, Mining Magazine, accessed 11 March 2025.

Woodburn, J (12 September 2023) ‘Evolution Mining’s gold operation expansion could threaten Lake Cowal bird breeding’, ABC News, accessed 11 March 2025.