UPDATE: Northern Star Resources is struggling to fill $120,000 annual positions in Kalgoorlie, highlighting a critical housing crisis that threatens the mining hub’s workforce. Despite the attractive salary and minimal prerequisites—a driver’s license and a clean drug test—approximately 100 job openings remain unfilled as housing shortages prevail.
During a recent Chamber of Minerals and Energy tour, Northern Star’s head of growth, Nick Strong, stated, “Kalgoorlie is full. Kalgoorlie is absolutely busting at the seams.” He emphasized that potential employees cannot relocate to the area due to a lack of available housing. “We cannot fill those roles. There’s no people in Kalgoorlie because no one can come to Kalgoorlie because there’s nowhere for them to live,” Strong expressed.
Rental accommodation in Kalgoorlie has become increasingly scarce and expensive. Kathryn State, a department manager with First National Real Estate, reported she receives daily inquiries from families wanting to move to Kalgoorlie. She noted, “There is a shortage of rental accommodation here, particularly good quality rental accommodation.” A two-bedroom unit that once rented for about $300 per week five years ago now commands $600+.
This housing crisis is compounded by rising interest from east coast investors seeking high rental yields, further straining an already limited housing supply. Northern Star, which prides itself on hiring residential workers rather than relying on fly-in, fly-out (FIFO) personnel, has been forced to consider temporary accommodation solutions. Strong revealed plans for a 300-person camp at the Super Pit site, costing up to $35 million, and an 800-bed facility approved in July on the outskirts of town. However, these initiatives face significant opposition from locals, with 144 submissions against the project during the consultation period.
“The companies don’t want them, workers don’t want them, but they are an essential part of the operations that we run,” Strong admitted. He highlighted the financial burden of FIFO workers, costing between $60,000 and $70,000 annually for accommodations and flights. “They’re not better workers. They don’t drive faster. They’re not some superpower,” he stated.
The urgent need for skilled labor is creating additional strain on local industries, such as childcare. Strong pointed out that childcare workers are leaving their positions to take up jobs at Northern Star, as they can double their wages. “We don’t have childcare to look after the kids of the people we’re working for us,” he explained.
In response, Northern Star is offering financial incentives to childcare workers and providing housing subsidies to support families in the community. “We have to look after the community,” Strong concluded.
This employment crisis comes as gold prices surge above $4,000 per ounce, enabling Northern Star to more than double its profits in the last financial year to $1.4 billion, up from $638.5 million. As the situation develops, the pressure on Kalgoorlie’s housing market and labor supply remains a critical issue for the mining industry and local residents alike.
As Northern Star navigates this challenging landscape, all eyes are on the ongoing efforts to balance labor needs with community welfare in this historical gold mining region.
