A regional council in Western Australia’s Goldfields has voted to sell a controversial mining camp for $22.05 million, marking a major step in its plan to reduce mounting debts that last year triggered a show‑cause notice from the state’s local government minister.
The Shire of Coolgardie has agreed to sell the 328‑bed Bluebush Village in Kambalda about 630 kilometres east of Perth to ASX‑listed gold miner Westgold Resources. The sale, completed via public tender, includes $1.95 million worth of adjacent undeveloped land spanning 9,835 square metres to allow for future expansion.
Councillors voted unanimously on Tuesday night to proceed, following a recommendation from acting CEO Sabine Taylor, who described Westgold’s offer as “the greatest value for money.” The company has already paid a $441,000 deposit, with settlement expected in the coming weeks.
Limited Public Feedback
After an extended consultation period, including three community forums, the Shire received only three public submissions:
One opposed the sale entirely
Two long‑term residents supported selling the camp but objected to selling the neighbouring land
Proceeds to Slash Debt
Shire president Paul Wilcox said the sale proceeds would be used to pay down debts, which totalled $25.4 million at the end of January.
He noted that around $16 million of that debt is tied directly to the camp.
“We have to go through the process of settlement and ensure contracts are in order, but essentially the current debt associated with the camp is about $16 million, and we also have several other debts which we can look at resolving,” he said.
Wilcox added that the council will now review its long‑term financial plan to gain a clearer picture of its future position.
“We don’t expect any less scrutiny over time… but I believe this is a significant step in leading us towards the right direction and restoring some vital confidence in council from the community.”
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