Evolution will pay $880 million to Glencore in return for a 30 per cent stake in its copper and silver production, and 100 per cent of gold production. 

It will also mean a “strategic alliance” regarding future exploration tied into the Ernest Henry asset. 

Both companies will work together on exploration activities in the region. 

A Glencore spokesperson said it was “business as usual” at Ernest Henry despite the long-term arrangement.

Glencore keeps the controlling interest and manages the day-to-day operations, the spokesperson said. 

“The partnership between the two companies is strategic, with Evolution’s key focus on gold and Glencore’s on copper in a region that is highly prospective for both minerals.” 

More detail from the arrangement could come from Glencore’s chief executive Ivan Glasenberg when presenting the company’s half year results on Wednesday evening by live audio webcast. 

Evolution’s executive chairman Jake Klein said the company has gained “exposure to a world-class mining asset”. 

“The addition of low cost gold production from Ernest Henry to our portfolio gives us exposure to another high quality, long life asset that further underpins the future success of our business,” Mr Klein said. 

“Evolution is building a portfolio of high quality, long life assets that will prosper through the gold cycle.” 

State Member for Mount Isa Rob Katter welcomed the announcement as an investment by a gold focused miner. 

“As part of the deal, they are more than doubling investment in exploration in the region, which means more activity and spending to boost the economy of Cloncurry and surrounds,” he said. 

Mr Katter said that Evolution was looking at a number of existing exploration targets. 

Glencore spent $589 million on Ernest Henry’s hoisting shaft in recent years. This meant almost $200 million in capital to reinvest into copper and zinc operations, Mr Katter said. 

“A good sign for the longevity of operations in the North West.”