Australian Gold Reagents to expand sodium cyanide production in Western Australia

Australian Gold Reagents (AGR) has announced its final investment decision to proceed with the significant expansion of its sodium cyanide production facility in Kwinana, Western Australia. This development will elevate AGR’s status as one of the world’s leading sodium cyanide producers, reinforcing its critical role in supporting the gold mining industry across Australia, Asia, Africa, the Americas, and the Middle East.

The expansion comes in response to growing global demand for sodium cyanide, a key chemical used in the extraction of gold from ore. The project will not only boost AGR’s production capacity but also advance the company’s environmental sustainability goals, positioning Australian Gold Reagents as a leader in both industrial growth and eco-conscious practices.

Why is AGR expanding its sodium cyanide production?

The decision to expand AGR’s sodium cyanide facility is driven primarily by the increasing demand from the global gold mining industry, which relies heavily on sodium cyanide for efficient gold extraction. AGR’s General Manager, Barney Jones, highlighted the strategic importance of the expansion, stating that it will enhance the company’s ability to supply high-quality sodium cyanide to both domestic and international markets.

The project will increase AGR’s annual sodium cyanide production capacity by more than 30%, raising the total output to approximately 130,000 tonnes of sodium cyanide solution per annum. Additionally, the expansion will boost solid sodium cyanide production from 45,000 tonnes to 60,000 tonnes annually, significantly improving AGR’s capacity to meet export demands.

Jones explained that sodium cyanide plays a pivotal role in the gold extraction process, making it indispensable to mining operations worldwide. “Our expansion will ensure we meet the rising demand from gold producers while maintaining the high standards of reliability and safety that our customers expect,” he said.

How will the expansion improve sustainability?

A key aspect of AGR’s expansion strategy is its focus on reducing environmental impact. The company is implementing several initiatives to improve the sustainability of its sodium cyanide production. Central to these efforts is the installation of a new low-emissions incinerator designed to manage waste products from the manufacturing process more efficiently.

This incinerator, partially funded by a $7.5 million (AUD) grant from the Australian Government’s Powering the Regions Fund, is expected to reduce AGR’s greenhouse gas emissions intensity by approximately 28%. The grant supports industrial decarbonisation efforts, aligning with Australia’s broader climate goals.

“Our new incinerator will allow us to significantly increase production while simultaneously reducing our environmental footprint,” Jones said. “It represents a major step forward in our commitment to sustainability.”

In addition to emissions reduction, AGR plans to recycle over 70% of wastewater generated during the production process. This initiative will conserve valuable water resources and reduce the company’s reliance on external water supplies. Furthermore, Australian Gold Reagents is exploring innovative technology to harness waste heat from the plant’s operations to generate zero-emissions electricity, which could be used to support both the facility and the local power grid.

What operational benefits will the expansion bring?

The expansion will not only enhance production capacity but also improve AGR’s operational efficiency. The new facilities will be integrated with existing infrastructure at AGR’s Kwinana site, which has been a cornerstone of the company’s operations for over 30 years. This integration will streamline processes, reduce costs, and improve overall safety.

AGR’s competitive advantage lies in its dual plant system, each equipped with advanced reactors. This setup minimises downtime during maintenance, ensuring a consistent supply of sodium cyanide to customers. The expansion will build on this strong foundation, further solidifying AGR’s reputation as a reliable supplier to the gold mining industry.

Jones noted that the expansion would also reduce operational risks. “By aligning new equipment with our current plant design, we can improve maintenance efficiency and ensure seamless operations,” he said. This approach reflects AGR’s commitment to maintaining high safety standards while scaling its production capabilities.

When will the expanded facility be operational?

The first phase of production from the expanded facility is expected to commence in the 2026 financial year, with full operational capacity anticipated by late 2027. Australian Gold Reagents has already made significant progress in preparing for the expansion, including detailed engineering work and the procurement of long-lead equipment necessary for the project.

Jones expressed confidence in the company’s ability to deliver the project on schedule. “Our experienced team has been working diligently to ensure the success of this expansion,” he said. “We are leveraging over three decades of expertise to execute this project efficiently and safely.”

What does this mean for the global gold mining industry?

AGR’s expansion will have a substantial impact on the global gold mining industry. By increasing the availability of high-quality sodium cyanide, Australian Gold Reagents will support mining operations in regions where supply chain reliability is critical. The company’s commitment to sustainability and operational excellence will also set new industry benchmarks for environmentally responsible chemical production.

As demand for gold continues to rise, driven by both industrial applications and investment interests, the need for efficient and sustainable gold extraction methods becomes increasingly important. The expanded facility of Australian Gold Reagents will play a vital role in meeting this demand, ensuring that gold producers worldwide have access to the resources they need.