Diversified miner Glencore has closed the sale of its interest in the Ernest Henry copper and gold mine in Queensland in Australia, receiving A$800m (R9bn) from Evolution Mining.
Glencore will receive another A$200m in a year, and the acquisition means all economic joint ventures entered into in 2016 have ended. Gold miner Evolution has assumed all rehabilitation obligations.
Glencore will acquire all the copper concentrate produced at the mine, and the disposal forms part of its increasing focus on transition metals, or those in demand for technologies needed in reducing emissions. This includes copper, which is used extensively in electric vehicles as well as supporting infrastructure.
In 2016, Glencore entered into an agreement with Evolution, receiving $669m (about R9.4bn at the time) in return for a 30% economic interest in the mine and an entitlement to 100% of the gold produced. It had announce the sale of the mine to Evolution in November 2021.
Glencore is one of the world’s largest global diversified miners, with more than 150 mining and metallurgical sites and oil production assets, with a footprint in over 35 countries.
The group said late in 2021 it remained committed to northwest Queensland, where it owns the Mount Isa Mines copper and zinc complex, copper smelter and Townsville copper refinery.
Glencore also intends to increase its focus on lower-cost, long-life copper assets in its global portfolio like those in Africa and South America.
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