Glencore sells Australian copper-gold mine for A$1B
Glencore is selling its Ernest Henry Mining (EHM) copper-gold mine in Queensland, Australia, to Evolution Mining for A$1 billion ($730 million).
According to a press release Glencore 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 said the deal will be paid for with existing available cash and new US$200M U.S. private placement.
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.
In October Evolution Mining expects to produce between 670,000 to 725,000 ounces in its 2022 fiscal year. All in sustaining cost will be A$1,200 to A$1,260 per ounce.
Ernest Henry started as an open pit mine in 1998. In 2011 the company spent $589 million for a life of mine extension project using sub-level caving methods.
In a deck explaining the deal, Evolution said that the acquisition is expected to contribute to a ~12% decrease to the group's all-in-sustaining cost on an annualized basis.
By Michael McCraeFor Kitco News
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