Fosterville expansion gets the green light

In the heart of rural Victoria’s gold country, Agnico Eagle Mines’ (TSX: AEM) underground Fosterville gold mine has long been recognised as one of Australia’s standout operations. It’s an engine of economic growth, a source of world-class ore, and the largest producer of gold in the state.

Now, with the Victorian Minister for Planning Sonya Kilkenny’s May 2025 approval of the environmental effects statement (EES) for Agnico Eagle’s Sustained Operations project, Fosterville is looking to the future by way of expansion.

Backed by a four-year environmental and regulatory process that included detailed technical and environmental studies, as well as extensive community and stakeholder engagement, the project ensures the mine can continue operating well into the next decade.

For Ion Hann, Agnico Eagle’s Vice President, Australian Operations, the decision to expand isn’t just about securing reserves. It’s about reinforcing Fosterville’s role as a cornerstone of the region and a player on the global gold stage.

“The recent EES process undertaken by the Victorian Government and Regulators was to gain approval for the current operations to be sustained for another ten years or more,” he said.

“Certain infrastructure is needed for Fosterville to continue operating such as new tailings storage facilities, ventilation shafts, waste rock storages, a Services Corridor to the North end of the Mine Lease, and additional water management facilities, to name a few.”

The approval means certainty for the workforce, for local businesses that depend on the mine’s presence, and for Victoria’s economy at large.

Navigating the EES

The pathway to securing approval was neither short nor simple, with the mine required to undertake the aforementioned EES, a process typically reserved for new projects.

“The EES was an extensive and comprehensive, four-year assessment involving technical, environmental and social studies, as well as deep engagement with stakeholders,” Mr Hann said.

“It gave all stakeholders the opportunity to participate, in particular our very close neighbours who see and feel our activities daily.

“It gave us the opportunity to listen and assess how the mine is contributing to the region and look at ways to continue improving, both operationally and from a community engagement perspective.”

Mr Hann adds that applying the process to an existing operation created some complexity.

“The EES process is ultimately designed for the assessment of new projects, not the continuation of existing approved projects,” he said.

“This created some confusion as the Sustained Operations project had to address existing both approvals and future needs. It took some time for all parties to collectively navigate the challenges that this presented.”

Employment & community

With approval secured, Fosterville can continue to play its role as a cornerstone of the Bendigo economy, with the gold mine sitting about 20-25km east of the town.

Mr Hann says the mine currently sustains about 1000 direct and indirect jobs, with almost all of these people residential in the region.

“The approval of our EES allows us to maintain these jobs and the economic benefits for the next 10 years or so,” he said.

“The economic benefits study conducted by Deloitte as part of the EES determined that Fosterville will contribute $2.5b to the state over the next decade, a significant part of which is focused in the Bendigo region.”

But beyond jobs and numbers, the mine’s people are embedded in local life.

“The continuation of Fosterville provides much more than just jobs,” Mr Hann said.

“Our workforce is part of the social fabric of this community. We volunteer at community, sporting, cultural and school events; we play in the local bands, shop locally and raise our families here.”

A landmark agreement

Fosterville’s future will also be shaped by a historic partnership with Traditional Owners.

“It would be remiss not to mention our landmark agreement with the Traditional Owners of the region, Djaara, whereby for the first time in Victoria the Traditional Owners are able to have input into site planning and establish permanent opportunities for their people on Country,” Mr Hann said.

“This relationship will help establish true economic self-determination for Djaara and we are proud to be part of this.”

Global standing

By sustaining production at the mine, the project not only secures the mine’s long-term operations, but also reinforces Australia’s reputation on the global stage as a reliable and responsible gold producer.

“Australia already has an enviable reputation in the global mining world and our country is blessed with every mineral that the future of humankind will rely on for prosperity,” Mr Hann said.

“Approval of the Fosterville Sustained Operation project is another signal that sustainable and responsible mining is welcome both here in Victoria and in Australia more generally, reinforcing the confidence of mining companies and investors in doing business here.”

Remaining competitive, he adds, is key in a world where gold prices are soaring and critical minerals are in increasing demand.

“Remaining competitive on the global scale through expertise, productivity and attractivity is key if we want Australia to benefit as gold prices reach record highs and the race for critical minerals is unfolding,” Mr Hann said.

Reserves & reinvestment

Mr Hann goes on to say that as of December 31, 2024, Fosterville had 1.7moz of gold in proven and probable mineral reserves, 1.5moz of gold in measured and indicated resources, and 1.8moz of gold in inferred resources.

“In 2024, Fosterville successfully replaced 86% of mining depletion with new mineral reserves,” he said.

“We continue to assess opportunities onsite and at the district level.

“The Company continues to significantly reinvest in the Fosterville gold mine and has confidence in the long term prospectivity of the region.

“The approval of the Sustained Operations project provides confidence and an opportunity for us to continue to explore.”

Sustaining what’s next

Agnico Eagle’s Sustained Operations project for Fosterville is more than a regulatory tick in a box.

It reflects years of detailed planning, consultation and commitment to ensuring the mine’s future can align with the needs of its workforce, the community and the environment.

The project represents a balance: the technical infrastructure required to keep operations safe and sustainable, the cultural partnerships that recognise and respect Traditional Owners and the economic contribution that sustains the wider Bendigo region.

Fosterville has secured stability for thousands of people who live and work in rural Victoria. Families whose livelihoods depend on the mine now have certainty for the coming decade and local businesses can plan ahead knowing that the region will continue to benefit from the economic activity generated by the operation.

Beyond the numbers, the approval also reinforces a sense of trust, that mining can continue responsibly while still delivering tangible social and cultural value.

The Sustained Operations project is therefore not just about sustaining gold. It’s about sustaining people, partnerships and prosperity well into the next decade.