In Kalgoorlie, Western Australia, Northern Star is struggling to fill approximately 100 jobs offering annual salaries of $120,000. The mining company’s efforts are thwarted by a severe housing shortage in the region, which has led to a significant number of vacant positions going unfilled for the past three years. The situation highlights the challenges faced by one of the largest employers in the historic goldfields area, particularly at the renowned Super Pit site.
Nick Strong, Northern Star’s head of growth, expressed frustration during a recent tour organized by the Chamber of Minerals and Energy. He noted, “Kalgoorlie is full. Kalgoorlie is absolutely busting at the seams so we can’t get enough employees.” The company is eager to attract new workers, stating that individuals need only a driver’s license and a clean drug test to qualify for these lucrative positions. “If you walk in off the street, pass a drug test and turn up with a good attitude, then we’ll train you up and pay you $120,000 a year for the privilege, working only five months of the year,” Strong added. Yet, the roles remain unfilled due to a lack of available housing.
Housing Shortage Drives Job Vacancies
The housing crisis in Kalgoorlie has reached a critical point, as managers offered high-paying positions have been forced to back out due to accommodation issues. Kathryn State, a department manager with First National Real Estate, highlighted the daily inquiries she receives from families looking to relocate for work. She stated, “There is a shortage of rental accommodation here, particularly good quality rental accommodation.” The rental market has drastically shifted; a two-bedroom unit that once rented for about $300 a week five years ago can now command over $600.
This trend has attracted interest from investors on the east coast of Australia, seeking high rental yields amid relatively low purchase prices. As demand escalates, the available housing stock continues to dwindle. Northern Star, while promoting residential employment over the fly-in, fly-out (FIFO) model, has resorted to building temporary accommodation camps to support its operations. Strong noted that various capital projects, including a $155 million renewable energy pipeline and a new tailings dam costing up to $220 million, necessitated this decision.
Community Concerns and Company Response
Plans for a new 300-person accommodation camp at the Super Pit site, estimated to cost around $35 million, have met with resistance from locals. An 800-bed facility proposed for the outskirts of Kalgoorlie received only four supportive submissions during its public consultation period, compared to 144 opposing voices. “Companies don’t want them, workers don’t want them, but they are an essential part of the operations that we run,” Strong acknowledged.
Additionally, the repercussions of the housing situation extend beyond employment; the local childcare industry is also feeling the strain. Strong noted that childcare workers, earning around $65,000, are leaving their positions for higher pay at Northern Star. “We don’t have childcare to look after the kids of the people we’re working for us,” he explained. In response, the company is increasing wages for childcare workers at YMCA Goldfields and offering housing subsidies to support the community.
Despite the challenges, Northern Star is experiencing significant financial success. The company reported a more than twofold increase in profits for the past financial year, soaring to $1.4 billion from $638.5 million, driven by gold prices exceeding $4,000 an ounce.
As the mining industry grapples with worker shortages and escalating housing issues, Northern Star’s proactive strategies reflect the intricate balance between business needs and community welfare in Kalgoorlie.
