Black Hills Knowledge Netowork

Homestake Gold Mine Officially Closed in 2001
Homestake Gold Mine Officially Closed in 2001
James St. John
September 7, 2017

IN HISTORY: Homestake Announces Shutdown of Lead Mine

On September 11, 2000, it was announced that the Homestake Gold Mine in Lead would be permanently closed after 124 years of operation. Larry Mann, the spokesman for the mine, shared that the falling price of gold and rising production costs were to blame for the closing. The Homestake Mine was once the oldest and largest producing gold mine in America, with a surface operation nearly a mile wide and underground tunnels descending more than 8,000 feet below the surface. It was also the largest employer in the northern Black Hills.

Though the news was a shock, many workers and townspeople observed previous signs that this day might come. Two years prior, Homestake officials announced massive changes to the mine including a complete restructuring of its underground operations, the shutdown of its open cut surface operations, and a layoff of nearly half the workforce. These changes were imposed to combat shrinking gold prices and sustain operations if gold remained valued above $325 an ounce; however, the price continued to decline. Over the next sixteen months, Homestake workers dismantled equipment and buildings while simultaneously mining the richest reserves to help stem the cost of the shutdown.

Less than a year later, the Barrick Gold Corporation purchased the Homestake Mining Company for a cost of 2.3 billion dollars. While it continued the shutdown of the company’s flagship operation in Lead, Barrick was interested in the other mines that Homestake owned including ones in South America and Australia. With this merger, Barrick became the largest gold corporation in the world.

When shutdown was complete, the remaining buildings of the Homestake Mine stood vacant. Some time later, talks of transforming the former mine into an underground research laboratory arose. The National Science Foundation became interested in the mine because the deep tunnels are an ideal location to study elusive particles called neutrinos and dark matter. After a large donation of $70 million by T. Denny Sanford in 2006, the site was selected to become a  Deep Underground Science and Engineering Laboratory (DUSEL).

After years of delicate construction, Homestake is now known as the Sanford Underground Research Facility and continues to study dark matter and neutrinos 4,850-feet underground. The lab now attracts scientists and science enthusiasts from around the world to learn the past, present, and future of the former mining goliath.

To learn more about the Homestake Gold Mine, visit the Black Hills Knowledge Network’s digital history archive. Learn more about the Deep Underground Science and Engineering Laboratory at the former Homestake Gold Mine at the Black Hills Knowledge Network issue hub page.

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