Ramelius Resources, a gold miner valued at approximately $7.2 billion, is reportedly interested in acquiring Northern Star Resources’ Carosue Dam gold mining operation, according to multiple market sources. The potential transaction could occur if Northern Star decides to divest some of its smaller mining assets amid ongoing activist investor pressure.
The Carosue Dam mine, situated about 120 kilometers northeast of Kalgoorlie, Western Australia, produces around 240,000 ounces of gold annually. Industry insiders estimate the asset could carry an asking price near $800 million. For Ramelius, acquiring Carosue Dam would complement its existing projects, particularly its Rebecca-Roe development located roughly 150 kilometers east of Kalgoorlie. The Rebecca deposit holds about 67 million tonnes of ore reserves, with mining scheduled to commence in the December 2027 quarter.
Northern Star, which completed a $5 billion acquisition of De Grey Mining in 2024 and merged with Saracen Mineral Holdings in 2021, has expanded its portfolio considerably but now holds a mix of larger and smaller assets. The Saracen deal gave Northern Star full control of Kalgoorlie’s Super Pit gold mine and its associated large mill, but recent operational challenges at its Kalgoorlie Consolidated Gold Mines have resulted in multiple production setbacks and lowered guidance. These difficulties have amplified calls for strategic reconsideration of the company’s asset base.
Northern Star’s activist investor Elliott Investment Management, which owns just under 5% of the company, has been urging Northern Star to consider selling assets or implementing other measures to boost its share value. Market speculation suggests potential buyers are showing interest either in Northern Star’s larger core assets or its smaller satellite mines, but not both simultaneously.
Among Northern Star’s smaller holdings potentially targeted for divestment are the Jundee projects and Kalgoorlie operations, including Kanowna Bell and South Kalgoorlie. Some analysts have floated the prospect of a demerger to separate these smaller assets from the company’s primary focus on the Kalgoorlie Consolidated Gold Mines, allowing Northern Star to concentrate on addressing its operational difficulties.
Ramelius itself has pursued an expansion strategy in the region, acquiring Spartan Resources last year for $2.4 billion and operating mines primarily around the Mount Magnet hub in the Murchison region and the WA Goldfields. The Carosue Dam acquisition would fit strategically with Ramelius’s efforts to strengthen its presence in Western Australia’s gold mining landscape as it develops growth projects and exploration activities.