Glencore and Evolution Mining have struck a deal for all of the gold and some of the copper produced at the Ernest Henry mine in northwest Queensland, Australia. For $A880 million and monthly installments equal to 30% of the mine’s production costs, Evolution purchased a 30% stake in the mine, which would entitle it to 100% of Ernest Henry’s payable gold production and 30% of its copper and silver production, subject to an agreed life of mine and block model.
Glencore will purchase the copper and silver (in concentrate) delivered to Evolution for cash at market value. It owns Ernest Henry Mining Pty Ltd., which owns and operates the Ernest Henry mine. Glencore will continue to manage the day-to-day operations at the mine. Ernest Henry is one of the deepest copper and gold mines in Australia and it normally produces about 100 metric tons per year (mt/y) of copper and 80,000 oz/y of gold. Ernest Henry’s copper-gold concentrate contains around 29% copper and 11 grams per metric ton (g/mt) of gold. Its concentrator has the capacity to produce 350,000 mt/y.
Evolution Mining produced more than 803,000 oz from seven Australian gold mines at an all-in sustaining cost (AISC) of A$1,014 per ounce. The company recently sold its Pajingo mine and this move will add to its gold position and reduces its overall AISC.