Glencore PLC (LSE:GLEN) has agreed to sell its interest in Ernest Henry Mining Pty Ltd, the owner of the Ernest Henry Mining (EHM) copper-gold mine in Queensland, Australia, to Evolution Mining Ltd (ASX:EVN) for A$1bn (£0.5bn).
“Glencore's commitment to north-west Queensland will continue with the Mount Isa mines copper and zinc complex, copper smelter and Townsville copper refinery,” said Glencore chief executive Gary Nagle. "Glencore will also increase its focus on lower-cost, long-life copper assets in its global portfolio like those in Africa and South America.”
The FTSE-100 miner will receive A$800mln when the transaction closes and a further A$200mln 12 months afterwards. The transaction is expected to close on January 6, 2022.
Evolution acquired an economic interest in Ernest Henry in November 2016, via a joint venture, with the asset managed and operated by Glencore. The Australian company will now assume full ownership and operational control of the mine and enter into a copper concentrate offtake agreement and separate ore tolling agreement with Glencore.
Glencore will offtake 100% of the copper concentrate produced at EHM.
"We have long coveted to own Ernest Henry,” said Evolution Mining’s 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.”