Australian Gold Reagents Expands Sodium Cyanide Production Facility in Kwinana
Perth, Australia – February 8, 2025 – In a significant move for the gold mining industry, Australian Gold Reagents (AGR) has announced its final investment decision to expand its sodium cyanide production facility located in Kwinana, Western Australia. This expansion is set to position AGR among the world’s largest producers of sodium cyanide, a critical component in gold extraction processes.
Meeting Global Demand
Barney Jones, General Manager of AGR, emphasized that the expansion is a strategic response to the increasing global demand for sodium cyanide, particularly from gold mining operations. “The expansion will increase AGR’s annual sodium cyanide production capacity by over 30 percent, bringing our total capacity to approximately 130,000 tonnes per annum,” Jones stated. This increase is not only vital for meeting the needs of local gold producers but also for supporting international customers across Australia, Asia, Africa, the Americas, and the Middle East.
Enhancing Operational Efficiency
The expansion will integrate seamlessly with the existing infrastructure at AGR’s Kwinana site, which is expected to enhance operational efficiencies and improve safety for the workforce. “It will ensure we can continue to deliver a reliable and efficient supply chain for our customers, supporting the growth we are expecting to see both in Western Australian gold mining and in our export markets,” Jones added.
Commitment to Sustainability
AGR’s expansion plans are not solely focused on production capacity; they also reflect a strong commitment to sustainability. One of the key features of the expansion is the introduction of a new low-emissions incinerator. This facility is designed to safely and sustainably destroy waste products generated during the manufacturing process while minimizing greenhouse gas emissions. Jones noted that the new incinerator will enable a significant increase in sodium cyanide production while reducing greenhouse gas emissions intensity by approximately 28 percent.
The expansion is partially funded by the Australian Government through a $7.5 million (AUD) grant from the Powering the Regions Fund, which aims to support industrial decarbonization efforts. Additionally, AGR plans to recycle over 70 percent of wastewater onsite, conserving valuable resources and reducing reliance on external water sources. The company is also exploring innovative technologies to utilize waste heat from the manufacturing process to generate zero-emissions electricity, potentially allowing the plant to export clean power to nearby facilities or support the local grid.
Timeline for Production
The first production from the expanded facility is slated for fiscal year 2026, with full capacity expected to be operational by the second half of fiscal year 2027. Detailed engineering design is already well advanced, and all long lead items for the operating plants have been ordered, ensuring a smooth transition into the expanded production phase.
About Australian Gold Reagents
Australian Gold Reagents operates as the management company of CSBP’s sodium cyanide manufacturing joint venture with Coogee Chemicals Pty Ltd. CSBP is part of Wesfarmers Chemicals, Energy and Fertilisers (WesCEF), and as a 75 percent shareholder, CSBP acts as the operating and sales agent for the company. This strategic partnership enhances AGR’s capabilities and market reach, solidifying its position in the global sodium cyanide market.
Conclusion
The expansion of AGR’s sodium cyanide production facility in Kwinana marks a pivotal moment for the gold mining industry, addressing the growing demand for this essential chemical while prioritizing sustainability and operational efficiency. As the company prepares for increased production, it is poised to play a crucial role in supporting gold mining operations both locally and internationally, all while adhering to its commitment to environmental stewardship.
For more information about Australian Gold Reagents and its expansion plans, visit www.agrcyanide.com.
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