THE Cloncurry Shire mayor considers a Queensland gold mining company’s stake in Ernest Henry Mine as a positive announcement for the region.
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“It’s a positive thing when a fairly major gold producer is willing to invest in the shire,” Councillor Greg Campbell said.
On Wednesday an ASX announcement said Evolution has a 100 per cent stake in the gold production, and a 30 per cent claim on copper and silver production at Ernest Henry Mine.
Cr Campbell said the investment by an Australian mining company will balance the cynicism of some in the shire who might note increased Chinese investment in the North West Minerals Province, particularly with some of the larger mines such as Dugald River and the Cloncurry Project.
“This just shows there is a balance and a capital from a wide variety of sources too,” Cr Campbell said, noting that an Australian company was investing into the assets of a Swiss owned company.
The mine is among the “higher bracket” of the shire’s ratepayers and also contributed much to community groups and schools.
“Any decision or direction the mine takes we will keep an eye on carefully,” the mayor said.
Glencore’s Ernest Henry Mine management had a policy of employing locally.
Cr Campbell said he was unsure whether Evolution had the same company policy of employing locally.
However, he understood that the new company would not have an influence on the existing workforce policy.
A Glencore spokesperson said it was “business as usual.”
The company kept the controlling interested and managed the day-to-day operations, the spokesperson said.
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.”
