Evolution Mining has completed the acquisition of the Ernest Henry copper-gold mine at Cloncurry.
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In 2016, Evolution acquired an economic interest in Ernest Henry from Glencore through joint ventures and in 2021 struck an agreement to acquire all the shares in Ernest Henry Mining, paying $800 million cash to Glencore with the balance of $200 million due on January 6, 2023.
The initial joint ventures delivered 100 per cent of future gold and 30 per cent of future copper and silver produced within an agreed life of mine area, which saw Evolution pay 30 per cent of the operating costs and capital of the operation.
Outside of the life of mine area, EVN held a 49 per cent interest in future additional copper, gold and silver production, and paid 49 per cent of the operating and capital costs.
Evolution said the copper-gold mine will generate immediate benefits from increased copper production, which will reduce its costs by around 12 per cent a year.
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Evolution has identified growth potential below the current operation and has begun a pre-feasibility study.
Executive Chairman Jake Klein said completing this transaction was transformational and demonstrated an ability to identify and secure accretive opportunities that also improve the quality of the company portfolio.
"Ernest Henry is a world class operation in a Tier 1 jurisdiction which we know well through our previous economic interest investment in 2016," Mr Klein said.
Including Ernest Henry, Evolution operates five wholly-owned mines - Mt Rawdon in Queensland, Cowal in New South Wales, Mungari in Western Australia, and Red Lake in Ontario, Canada.
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