There has been positive feedback at all levels of government to the news that Cloncurry's Ernest Henry Mine has new owners.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
On Wednesday Australian-owned Evolution Mining informed the ASX they had purchased the copper-gold mine, 40km north of Cloncurry from Glencore for one billion dollars.
Under the deal Glencore will continue to treat Ernest Henry product at its Mount Isa smelter, which pleased Kennedy MP Bob Katter who initially held concerns on what the long-term impact would be for the north west.
"We have received assurances that Glencore will offtake 100 percent of the copper concentrate and it will be processed, as normal, by Glencore in its Mount Isa smelter and Townsville refinery," Mr Katter said.
"One of KAP's core principles is that ownership of resources is by Australians and I am optimistic about what this company will bring to the region.It is heartening to hear that an Australian company has bought this asset and has taken steps to ensure that the sale would not impact the employment of those involved in the processing of the ore. It would be disastrous to lose the Mount Isa smelter. The loss could also force the fertiliser plant to close and cost the local economy over $200 million."
READ ALSO:
Meanwhile Queensland Resources Minister Scott Stewart told parliament on Thursday the sale was a huge vote of confidence in the future of the mine and in copper as a valuable commodity.
"I was at the Ernest Henry Mine for a safety reset in September this year and I witnessed first-hand the quality of the operation, and I spoke to Glencore about the huge potential of the site," Mr Stewart said.
"It's exciting that a company like Evolution Mining can see this potential, and has invested $1 billion to secure the mine's future."
Cloncurry Mayor Greg Campbell has also endorsed the sale.
Speaking to ABC on Thursday Cr Campbell said the news was positive and the price tag showed Evolution valued Ernest Henry very highly.
"It shows how important the Cloncurry area is to the North West and the state," Cr Campbell said.
"Across all Evolution's operations they run at 67pc local employment, which is a very positive number. Ernest Henry doesn't operate at that high a number at this stage but the impression I get is that Evolution being Australian-owned we could see some really positive change."
Cr Campbell said he was due to meet Evolution boss Jake Klein to see what their plans were.
"I've already seen in a media release there are no staff changes at senior level because they are doing a good job which positive," he said.
"We had a good relationship with the Glencore people, Matt O'Neill (Qld Metals boss) in particular but Aaron Harrison (Ernest Henry GM) and the team are living here and they are running the mine very well."
Ernest Henry operation commenced as an open pit mine in 1998 and transitioned to underground mining in 2011.
Evolution acquired an economic interest in Ernest Henry in 2016 via a joint venture structure with the asset managed and operated by Glencore.
Under the new deal, the JV will expire, and Evolution will receive 100% ownership and operatorship of the asset.
Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content:
Bookmark https://www.northweststar.com.au/
Make sure you are signed up for our breaking and regular headlines newsletters
Follow us on Twitter
Follow us on Instagram
Follow us on Google News
Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
