Glencore agrees $1 billion sale of Queensland copper-gold mine to Evolution

Glencore has entered into a binding agreement for the sale of its 100% interest in Ernest Henry Mining Pty, the owner of the Ernest Henry Mining (EHM) copper-gold mine in Queensland, to Evolution Mining.

The FTSE 100 commodity trading and mining giant will receive A$1 billion, comprising A$800 million on the closing of the transaction and a further A$200 million payable 12 months after the transaction closes.

Evolution will assume full ownership and operational control of the copper-gold mine and will enter into a copper concentrate offtake agreement and separate ore tolling agreement with Glencore.

ASX-listed Evolution has worked in partnership with Glencore for the past five years at EHM, emerging as a globally relevant low-cost gold producer with a strong growth profile.

“We have long coveted to own Ernest Henry,” said Evolution executive chairman Jake Klein. “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 we are proud that it will once again be 100% Australian owned.”

Meanwhile, Glencore will continue operating its Mount Isa Mines copper and zinc complex, copper smelter and Townsville copper refinery in Queensland, while increasing its focus on lower-cost, long-life copper assets in its global portfolio like those in Africa and South America.