Evolution Mining has completed its move to take full ownership of the Ernest Henry copper-gold mine near Cloncurry in Queensland, paying $800 million to Glencore.
The purchase sets Evolution to become one of the lowest-cost gold producers in the world and the mine has generated immediate benefits by reducing the company’s all-in sustaining costs (AISC) by about 12 per cent on a full year basis.
Evolution executive chairman Jake Klein said the deal was typical of such a successful company.
“Acquiring full ownership of Ernest Henry is transformational for Evolution and again demonstrates our track record of identifying and securing opportunities that are both accretive and improve the quality of the portfolio,” Klein said.
The deal was announced in November 2018 for a total value of $1 billion. The remaining $200 million will be due in the coming 12 months from the date of completion.
Evolution initially bought into Ernest Henry in 2016, paying Glencore $880 million to acquire 100 per cent of the gold production and 30 per cent of the copper and silver production from the mine.
With almost six years of operation under its belt at Ernest Henry, Evolution and Klein are confident in their ability to improve the mine’s operations.
“I extend a warm welcome to our new colleagues that join Evolution today,” Klein said.
“We look forward to continuing to build on our relationships with the local communities in Cloncurry and Mt Isa, and with the traditional custodians of the land, the Mitakoodi People.”
In November, as the full acquisition was announced, Glencore chief executive officer Gary Nagle said Evolution had proven its ability to operate Ernest Henry since 2016.
“Evolution has been a strong partner in the Ernest Henry mine for five years. They share our way of working and commitment to operating responsibly across all aspects of the business,” Nagle said.