Evolution buys major Glencore copper asset
Evolution already owns the gold and parts of other assets produced at the Ernest Henry copper, gold and silver mine located 38km north-east of Cloncurry.
It’s now securing itself access to a major copper producer coming into an era when copper demand to supply the new economy will be at a premium.
They’ll be paying $1 billion in two tranches; $800 million upfront when the transaction is complete on 6 January 2022 and $200 million 12 months later.
Evolution has advised that no funding is required to complete the transaction.
They’d had their eye on the complete package for some time said Evolution chief executive Jake Klein.
“We have long coveted to own Ernest Henry,” Mr Klein said.
“It is a world-class asset in Australia and one which we know extremely well due to our successful investment in the asset in 2016 and proud that it will once again be 100 percent Australian owned.
“The acquisition is consistent with our strategy, materially improves the quality of our portfolio and delivers both strong cash flow and mine life extension opportunities.
"The site management team have an outstanding track record of operational delivery and we are delighted they will be joining Evolution and look forward to working with them to make this an even better operation.
"We are also pleased to be continuing our strong relationship with Glencore and that the product will continue to be treated in the local region at their Mount Isa smelter and Townsville refinery.”
Glencore has invested more than $24 million in a train fleet to transport products for its Queensland copper and zinc operations.The fleet came online...