Chinese-backed Hanking Gold to reopen Mount Bundy mine as gold prices surge

Hanking Gold is restarting the Mount Bundy gold mine, located about 100 km south of Darwin, after a 1997 collapse, leveraging today’s elevated gold price to achieve profitability from day one. Executives broke ground on a new processing facility and plan to commence output in early 2028, with sales slated for the same year. Mark Qiu said the venture should be profitable in its first year, given a gold price of $3,750 per ounce as the break-even point.

The mine’s lifespan is estimated at 17 years, with potential extensions beyond 20 years as resource estimates grow. A $30 million contract for the plant went to CPC Engineering, and a 400-bed accommodation camp is under construction. Environmental safeguards include a $3 million water-treatment plant and strict cyanide limits on tailings.